IPO-bound logistics tech startup Delhivery is reportedly in talks to acquire Bengaluru-based Spoton Logistics. The logistics unicorn is among a flock of Indian startups such as Nykaa, Policybazaar, CarTrade, MobiKwik among others to emulate Zomato’s IPO success. Delhivery is expected to complete the acquisition in the next 2-3 weeks.
According to a MoneyControl report, Delhivery will acquire Spoton for $200 Mn which will see the exit of Samara Capital and Xponentia Fund Partners from Spoton. In August 2018, Spoton Logistics was acquired by a consortium of investors led by Samara and Xponentia for $78.48 Mn.
Founded in 2012 Spoton Logistics is said to have a presence in over 300 locations and reaches more than 22,000 postal codes in India. With around 1,300 employees, Spoton operates 13 major depots and 35 transit hubs in India. The company is led by MD and CEO Abhik Mitra, while the board of directors consists of Samara Capital cofounder and MD Gautam Gode, Samara Capital MD Abhishek Kabra, Xponentia founder Devinjit Singh, besides Mitra.
Acquiring Spoton Logistics will enable Gurugram-based Delhivery to further strengthen its delivery network. Founded in 2011 by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati, and Suraj Saharan, Delhivery provides a full suite of logistics services such as express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B & B2C warehousing, and technology services. The startup claims to have successfully fulfilled over 850 Mn transactions since inception and works with over 10,000 direct customers. Cofounders Manglani and Tandon exited the company earlier this year.
Delhivery raised $100 Mn from global logistics firm FedEx last month. Prior to that, it raised $275 Mn in a primary funding round led by Boston-headquartered investment firm Fidelity. Singapore’s sovereign wealth fund GIC, Abu Dhabi’s Chimera, and UK’s Baillie Gifford also participated in the new round. Delhivery also counts SoftBank, Tiger Global, Times Internet, The Carlyle Group, and Steadview Capital among its investors.
The $275 Mn round valued the 10-year-old startup at close to $3 Bn. The company has raised more than $1.33 Bn till date.
Delhivery is expected to go for an initial public offering (IPO) this year at a valuation of $3.2 Bn-$4 Bn. It is reportedly planning to raise $800 Mn through the public listing. The startup entered the unicorn club in 2019 after raising $395 Mn from SoftBank.