CPPIB to buy 8% stake in logistics firm Delhivery for $150 Mn

Two months after raising its last round, logistics firm Delhivery is in advance stage of talks to raise about $150 million from Canadian pension fund CPPIB.

CPPIB is reportedly buying the shares from homegrown private equity firm and Renuka Ramnath-led Multiples Alternate Asset Management, which made $35 million investment in Delhivery parent firm SSN Logistics five years ago.

The deal will happen through secondary stake sale valuing Delhivery at $1.5 billion, as per sources close to the development quoted by an ET report.

CPPIB will pick up 8% stake in the logistics major.

This would be second investment by CPPIB, which has been increasingly focusing on emerging markets, in the Indian startup ecosystem.

Last year in December, it was part of $400 million round raised by edtech major Byju's.

Founded in 2011, Delhivery provides a full suite of logistics services in more than 1,800 cities and has registered over 450 million transactions since its inception. It already counts SoftBank, Tiger Global, Nexus Ventures and TIL as its backers.

In March, Delhivery closed Series F round with $413 million led by Softbank Vision Fund, which holds over 23 % of stake in the logistics firm. Existing investors Carlyle and Fosun have also participated in the round.

In February, the logistics major had acquired Indian business of Dubai-based logistics firm Aramex. It faces competition from players such as E-com, Blue Dart, Xpressbees and Shadowfax among others in the space. At present, eight-year-old Delhivery has about 30 fulfilment centres in 12 cities for B2C and B2B services.

In FY18, Delhivery recorded a 42 per cent increase in the revenue from Rs 756.01 crore to Rs 1073.64 crore. It also saw the losses surging by 8.5 per cent to Rs 692.22 crore during the same period.