Delhivery gears up for fresh fundraise with a potential secondary component

Logistics company Delhivery appears to be raising a fresh round which could be a mix of primary and secondary capital. The company made capital changes to facilitate the fundraise and offer exits to early backers as well as promoters through a secondary transaction.

Delhivery has entered into an amended shareholders' agreement with 19 of its investors in June and the investors controlling preference capital have agreed to convert all of their holdings into equity shares, regulatory filings show.

The changes in the shareholders’ agreement and the drastic alteration in Delhivery's capital structure indicates that the company is likely in the midst of raising a significant round in coming months with possibilities of material secondary transactions taking place.

Besides the conversion of preference capital, shareholders have also agreed to alteration to their rights are shareholders including the anti-dilutive clause. Post restructuring of the capital the ownership will look something like this:

SoftBank stands out as the biggest stakeholder, controlling 25.72% stake, followed by Nexus Ventures which holds 12%. Carlyle Group has an 11.88% ownership in the Delhi-headquartered company.

Times Internet and CIPB hold 8.88% and 7.97% respectively while Tiger Global holds 6.88% stake in the logistics company through its Internet Fund III. RPS Ventures, Ab Initio Capital, Alpine opportunity fund, Multiple PE, CMF/Fosun, and other individuals control 12.21% stake collectively.

ESOP pool comprises of 6.37% the capital on a fully diluted basis.

Importantly, the five co-founders of the $1.5 billion valued firm collectively hold less than 9% stake. Mohit Tandon commands 2.22%, Suraj Saharan holds 2.17%, Sahil Barua controls 2.31%, while Kapil Bharati and BK Manglani own 0.92% and 0.45% stakes respectively in the eight-year-old logistics firm.

The last secondary was initiated when the company had raised a $115 million round from  Canadian pension fund CPPIB. The Canadian fund had acquired a 7.97% stake in the logistics unicorn, out of which 0.69% was acquired through secondary transactions with existing shareholders.

The aforementioned co-founders were amongst the biggest beneficiaries of this transaction, offloading shares worth nearly around Rs 55 crore to the Canadian investor at that time.

Delhivery has declined to offer comments on Entrackr’s detailed queries related to the alteration of capital structure, investors’ rights and potential fundraising.