SoftBank To Increase Stake By 3.28% In Logistics Startup Delhivery

SUMMARY

SoftBank already holds 22.44% stake in company

Softbank’s $350 Mn Investment has risen Dellhivery’s valuation to $1.6 Bn

Other investors of the company include Tiger Global, Nexus Venture Partners and Times Internet

Masayoshi Son-led SoftBank, which already holds 22.44% major stake in Gurugram-based logistics startup Delhivery, has decided to increase its stake in the company by 3.28%.

According to media reports, SoftBank has sought final approval from the Competition Commission of India (CCI). The Japanese multinational conglomerate holding company had first decided to invest $245 Mn in Delhivery in October 2018.

However, in the documentation submitted to CCI in January, SoftBank, with plans to become the largest shareholder in Delhivery by acquiring a 37.97% stake, sought approval to invest $450 Mn in the logistics startup.

According to SoftBank’s filing with the CCI in January, the proposed stake buy involves two steps:

Subscription to 22.44% of the total share capital of Delhivery by SoftBank Vision Fund
Upon completion of September 1, a potential subsequent acquisition of shares at a price and on such terms to be agreed up to 37.87% stake in the Indian startup.

In February 2019, the Son-led company got formal approval from CCI and ended up picking up 22.44% major stake for $350 Mn. The CCI also approved the acquisition of preference shares in Delhivery by Mauritius-based CA Swift Investments, in the same month.

The SoftBank deal ended up rising Delhivery’s valuation to around $1.6 Bn and marking the company’s entry into the Unicorn club. Inc42 in its Annual Indian Tech Startup Funding Report 2017 had listed Delhivery among the 34 startups that have the potential to become a unicorn before 2020.

Founded in 2011, Delhivery has 12 fulfilment centres for B2C and B2B services, as of December 2018. It also works with ecommerce companies such as Flipkart and Paytm, and provides its services in about 600 cities and 8,500 pin codes across India.

The Gurugram-based company was founded by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati, and Suraj Saharan. The company’s investors include China’s Fosun International, New York-based investment firm Tiger Global, Nexus Venture Partners and Times Internet.