With IPO In Mind, Delhivery Looks To Sell $150 Mn Worth Stake To CPPIB

Canada Pension Plan Investment Board (CPPIB) is looking to pick up around 8% stake worth $150 Mn in Delhivery via a secondary market investment. It is reportedly buying the shares from homegrown private equity firm Multiples Alternate Asset Management.

Venture capital firm Nexus Venture Partners, an early investor in the ecommerce logistics provider, may also liquidate some of its shareholdings.

An email sent to Delhivery did not elicit any response till the time of publication.

CPPIB currently manages $392 Bn in assets and claims a11.1% 10-year annualised rate of return. As of March 2019, it has invested $103.7 Bn in the Asia Pacific, which is 26.5% of the total assets. It also has an office in Mumbai and is investing across public and private companies, real estate, infrastructure and various types of funds.

In India, the first investment for CPPIB was BYJU’S wherein it was the part of the edtech platform’s $328 Mn Series F around along with Naspers Ventures BV and General Atlantic Singapore TL Pvt Ltd.

The reports came in soon after the ecommerce logistics provider shared its plans to float a $350 Mn IPO in the next few months. With this, it is aiming for a valuation of $2-2.8 Bn through a mix of primary and secondary share sales, as Inc42 reported earlier.

This year in March, Japanese conglomerate SoftBank invested about $350 Mn in the ecommerce logistics provider taking its valuation to $1.6 Bn. In February, Delhivery also acquired the India business of Dubai-based logistics firm Aramex for an undisclosed amount.

Delhivery was founded in 2011 by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati, and Suraj Saharan. It services about 600 cities and 8,500 PINs in India. Leaving Softbank and Multiples aside, the company is backed by giants like Carlyle Group, China’s Fosun Group, Goldman Sachs Investment Partners, Tiger Global, and Times Internet.

In FY18, the company reported a jump of 42% in its revenue gaining total revenue of $153.26 Mn (INR 1,073.64 Cr). Here, its operational revenue contributed almost 95% to its total revenue as against $107.92 Mn (INR 756 Cr) for the previous year.

According to Inc42’s State of The Indian Startup Ecosystem 2018 Report, between 2014 and 2018, these startups have raised over $1.4 Bn funding across 115 deals. According to a report by investment bank Avendus Capital, the logistics tech market is expected to surge to $9.6 Bn by 2020.

The development was reported first in ET epaper.