Finally, SoftBank is investing $350 Mn in Delhivery for 23.41% stake

In the end of February 2019, Delhivery had gotten a nod from the Competition Commission of India (CCI) to let SoftBank and Carlyle Group acquire more stake in the company.

This was in the context of funding talks between the three that had been going on since October last year. At that time, the company was looking to raise about $250 million from SoftBank.

On the first day of March, Delhivery’s Board filed a Special Resolution with the Ministry of Corporate Affairs stating the class, number, and value of shares that the company will issue to these two companies.

Masayoshi Son led SoftBank Vision Fund has committed to invest $350 million (Rs 2490.8 crore) by way of 12.35 lakh Series F CCCPS at a price of Rs 20,163 each (or 283.32 USD each).

At the same time, Carlyle Group has signed an agreement to buy under 1.59 lakh shares of the same category and pricing, making their investment worth $45 million.

After this investment, SoftBank’s Vision Fund entity SVF Doorbell (Cayman) Ltd. will own a 23.41 per cent stake in the company, while Carlyle Group operating under the name of CA Swift Investments will own a total of 12.39 per cent stake in Delhivery.

Interestingly, the CCI had given approval to SoftBank to acquire a 22.44 per cent stake.

When the $395 million worth monetary transaction is executed as per this resolution, the post-money valuation of the company will be around $1.6 billion, giving it an entry to the Unicorn club of the startups.

Further, the firm also had an agreement dated December 2018 with Fosun where the early backer of the company had also committed to investing Rs 128.1 crore in the firm via 63.5k shares of the aforementioned class, but there is no news on that front yet.

Till now the firm has a raised a total of about $260 million and the valuation in the last round stood at $800 million. With this round, the total money raised would reach $655 million.

(hat tip: paper.vc)