IPO-bound logistics startup Delhivery has acquired Spoton Logistics. The company did not disclose the sum but sources told us it was about $300 million. This is the second acquisition of the year for Delhivery which, according to a Bloomberg report, plans to file for its IPO by October.
The board sub-committee that Delhivery constituted in January for its IPO and M&As is hard at work. And it shows.
What’s happening? Earlier today, the logistics startup acquired Spoton Logistics for an undisclosed amount, which sources told us was around $300 million.
- Separately, Bloomberg reported that the company plans to file its draft IPO papers by October to raise as much as $1 billion.
Why the acquisition? To strengthen the business-to-business vertical. Delhivery has over the past 10 years established itself as a leader in business-to-consumer logistics, thanks to its tie-ups with leading ecommerce companies for deliveries.
- “Now by combining our truckload business with Spoton’s, we will be on the path to the same position in B2B express as well,” CEO Sahil Barua said.
About Spoton: Spoton too has been around for nearly a decade.
- The company started its journey in 2012 when India Equity Partners bought the domestic road express business of TNT India.
- In 2018, it was acquired by a consortium of investors led by Samara Capital and Xponentia, both of which are now exiting the firm.
IPO details: Delhivery, backed by SoftBank Vision Fund and Carlyle Group, is targeting a Mumbai listing before March next year, Bloomberg reported, citing people with knowledge of the matter. The offering could include both new and existing shares, one of the people said. Details of Delhivery’s IPO, including size and timeline, could still change.
ETtech was the first to report on Delhivery’s IPO plans in June.
“The company is still working out details of the issue, including its size. However, given that we already have substantial cash on our balance sheet, we expect it to be a primary issue in the $400-500 million range,” Barua had said then. “Since we are an Indian company and have a substantial part of our business here, we will list locally.”
A month later, on July 16, Delhivery raised $100 million as strategic capital from FedEx Express, a subsidiary of global logistics solutions provider FedEx Corp. At its previous funding round led by Fidelity and GIC, the company was valued at $3 billion.
Source: Economic Times