SUMMARY
Internet Fund III held a total of 3.4 Cr shares of Delhivery, or a stake of 4.68%, as of December 31, 2022
The stake sale comes almost three months after Delhivery’s another pre-IPO investor, CA Swift Investments, sold 2.5% of its stake in the logistics startup
Delhivery reported a 54.6% year-on-year rise in its consolidated net loss to INR 195.6 Cr in Q3 FY23
Tiger Global’s Internet Fund III offloaded 1.2 Cr shares of logistics major Delhivery in a bulk deal worth INR 414.2 Cr on Wednesday (February 22).
Shares of Delhivery fell 3.6% to end today’s session at INR 336.4 on the BSE.
Internet Fund III held a total of 3.4 Cr shares of Delhivery, or a stake of 4.68%, as of December 31, 2022. With the latest deal, the VC fund has offloaded a 1.7% stake in the company.
This comes almost three months after Delhivery’s another pre-IPO investor, CA Swift Investments, sold 2.5% of its stake, or 18 Mn shares, in the logistics startup worth INR 607 Cr after the expiry of the lock-in period.
In November last year, Tiger Global offloaded its entire stake in PB Fintech, which it held through Tiger Global Eight Holdings and Internet Fund III, after the insurtech startup’s lock-in period expired.
It must be noted that Tiger Global’s India portfolio includes 124 startups since 2014, as per Inc42 data. The firm has reportedly invested more than $6.5 Bn in the market since its entry. However, only a few of its portfolio companies including HighRadius, OfBusiness, Oxyzo, and CoinSwitch are currently profitable.
The latest stake sale comes days after Delhivery reported a 54.6% year-on-year (YoY) increase in its consolidated net loss to INR 195.6 Cr in Q3 FY23.
Meanwhile, brokerage JM Financial has initiated its coverage on Delhivery with a ‘hold’ rating and a target price of INR 350, which implies an upside of 4% to the stock’s last close.
“We expect Delhivery to demonstrate high marginal profitability for only a few more quarters and then normalise to 25-30%. However, a sustained growth path should see Adj. EBITDA margin inch upwards consistently to reach 12-15% in a decade,” it said in a research note.
The slump in Delhivery shares on Wednesday was in line with the movement in the broader market. While Sensex crashed nearly 1,000 points, Nifty fell 272.4 points today amid the slump in the US market due to fears of further interest rate hikes, higher inflation, and slower global growth.
