India’s unicorn club of startups, is ready to welcome a fresh new entrant from a previously undermined category – Logistics.
Delhivery currently clocks the highest revenue among all Indian e-Commerce logistics solutions providers, and is all set to make a grand entry into the billion-dollar valuation club, with reports of a potential $450 million investment from SoftBank.
The SoftBank “Vision” fund is reportedly set to invest an estimated $350 million (nearly Rs 2,500 Crores) as fresh capital into Delhivery. Japan’s SoftBank also aims to increase its net stake Delhivery by channelling another $100 million via secondary transactions.
Business Today reports that this $450 million investment is likely in its final stares, and that a formal announcement in this regard can be expected as early as next month (December). This round will push the valuation of Delhivery over $1 billion – going up by more than 25% since its last funding round from March last year.
Founders and early investors to cash out as part of unicorn investment round
According to Business Today, this investment round will serve as a ‘secondary exit’ of sorts, allowing the founders (Sahil Barua, Mothit Tandon, Suraj Saharan, Bhavesh Manglani and Kapil Bharati) to cash out and to receive new ‘stock options’ at a strike price that is equal to 15% of the price of each share in the latest round.
Other prominent investors who have put their bets on Delhivery, include China’s Fosun International, New York-based investment firm Tiger Global, Nexus Venture Partners and the Times Internet group (Brand Capital). As per the current plan of investment, SoftBank will become the single largest shareholder (with 32% of the net shares), and Carlyle, which came in at the last round, will retain 11-12%.
Delhivery has also postponed an IPO that it had previously planned – through which it was aiming to raise close to $350 million. In the meantime, the firm has improved its financials substantially, narrowing its losses at a rate nearly 49% YOY (year on year), down to Rs 249 crores against a revenue of Rs 751 crores (up from Rs 523 crores).
The new funding is likely to place Delhivery in the big logistics league, competing against established majors such as Flipkart’s Ekart Logistics, and Amazon’s ATS.