Steadview invests $25 Mn in Delhivery via the secondary route

Delhivery has scooped up $25 million through a secondary transaction from alternative asset management firm Steadview Capital. Steadview has bought shares from an early investor in the Gurugram-based logistics unicorn.

In September, Entrackr had reported that Delhivery made capital changes to facilitate the fundraise and offer exits to early backers as well as promoters through a secondary transaction.

"We are delighted to welcome Steadview Capital onto our cap table. We've known Steadview and Ravi ( founder of Steadview) for quite some time, and it's great to have them join us for this next phase of Delhivery's journey. Steadview is a long-term investor and we see them playing a key role as Delhivery heads towards the public markets in the next 12-15 months,” said Sahil Barua, founder and CEO of Delhivery in a press statement. 

This is another secondary deal for Delhivery which had raised a $115 million round from Canadian pension fund CPPIB in lieu of 8% stake in September 2019.  While the name of the early investor in the latest secondary deal couldn’t be ascertained, Fintrackr had decoded the ownership structure of Delhivery after the restructuring of the capital.

Delhivery has been planning an initial public offering (IPO) for two-three years. In September, the SoftBank-backed company’s chief business officer Sandeep Barasia had said that they are waiting for the upcoming rules on foreign listing but would prefer to list in India.

While Delhivery has not disclosed its annual financial statement for FY20, its losses surged by 160% to Rs 1,781.03 crore in FY19 from Rs 684.45 crore in the previous fiscal. During the period, the company’s revenue increased only by 58.2% to Rs 1,694.97 crore from Rs 1,073.64 crore in FY18.

Delhivery, which claims to have a network beyond 17,500 pin codes and 2,300 cities, provides a full suite of logistics services such as express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B & B2C warehousing, and technology services. Since its inception, it has fulfilled over 800 million transactions and it works with over 10,000 direct customers and over 450 enterprises and brands.

With the investment in Delhivery, Steadview has added another unicorn in its portfolio which include Ola, Unacademy, Dream11, Freshworks, Nykaa, Policybazaar, Zomato and Lenskart.