Peak XV Scores Nearly 10X Return From Porter Exit

SUMMARY

Sources told Inc42 that Peak XV exited with a payout close to INR 1,200 Cr on a total investment of around INR 116 Cr

Just a few days back, Porter turned unicorn after bagging $200 Mn in a funding round

Of the total fundraise, around $120–150 Mn came via secondary share sales, largely involving investors like Peak XV and Kea Capital

Peak XV Partners has clocked nearly 10X returns by fully exiting its investment in hyperlocal logistics startup Porter during the company’s latest fundraising round.

Sources told Inc42 that Peak XV exited with a payout close to INR 1,200 Cr on a total investment of around INR 116 Cr.

“The company has grown tremendously since our Series A investment in 2015 and is now worth over a billion dollars. After a decade-long partnership with the team, we have exited our investment,” a Peak XV spokesperson said.

Mint reported the development first.

Although Peak XV did not disclose the stake details from Porter’s exit, reports suggest that the VC firm previously owned 13.77% of the company.

Just a few days back, Porter turned unicorn after bagging $200 Mn in a funding round. Of the total fundraise, around $120–150 Mn came via secondary share sales, largely involving investors Peak XV and Kea Capital.

New backers like Kedaara Capital and Wellington Management, as well as existing investor Vitruvian Partners, also infused capital into the round.

Back then, Porter said it would use the fresh capital to expand into more cities, support MSMEs, and create opportunities for over 1 Mn gig workers. It will also use the funds for team expansion, technology development, and operational improvements, while keeping the sustainability part intact.

With this, Porter has joined the likes of Rebel Foods, Healthkart, Finova, K12 Techno, and Cloudnine Hospitals, where Peak XV has exited either partially or fully.

Founded in 2014 by Pranav Goel, Vikas Chaudhary, and Uttam Digga, Porter provides transportation services through its own fleet of over 7.5 lakh drivers in more than 22 cities. It offers services like on-demand goods transport, packers and movers, courier services, among others.

It competes with the likes of Shadowfax, Dunzo, Swiggy Genie, and Pidge among others and Tiger Global and Lightrock are among its backers.

On the financial front, Porter’s net loss declined 45% to INR 95.7 Cr in FY24 from INR 174.6 Cr in the previous fiscal year on the back of lower cash burn. Operating revenue zoomed 56% to INR 2,733.7 Cr during the year under review from INR 1,737.4 Cr in the previous fiscal year.

Peak XV’s Plans

Since separating from Sequoia Capital, Peak XV has realised exits worth approximately $1.2 Bn till September last year. Also, over the past five years, it has generated $3.6 Bn in cash exits.

In addition to private firms, the venture capital firm has also divested stakes in companies on the verge of public listings or trimmed holdings in already-listed entities such as ixigo, Awfis, Go Digit General Insurance, BlackBuck, Zomato, Mamaearth, and MobiKwik, among others.

Peak XV’s managing director, Mohit Bhatnagar, in September told Inc42 that shifting domicile back to India is a major topic among its portfolio companies.

The VC firm has also been looking to raise its first independent fund worth $1.2 – 1.4 Bn since splitting with Sequoia. Its last fund under the Sequoia Capital umbrella was announced at $2.85 Bn in 2022

The VC firm has raised 13 funds to date and made more than 400 investments across India and Southeast Asia.