E-commerce logistics firm Delhivery, run by Gurgaon-based SSN Logistics Pvt. Ltd, has raised a US$100-million funding round led by US investment fund Carlyle Asia Partners IV.
Carlyle Asia Partners IV has picked up a significant minority stake in the company. Existing investor Tiger Global also participated in the round that values the Gurgaon-based company at over $600 million.
This is world’s second largest PE fund Carlyle’s first big logistics bet in the e-commerce space in India. It is also among the largest PE investment in this space after Warbug Pincus agreed to invest US$133 million in Ecom Express in July 2015.
Prior to the funding Tiger Global held about 20 per cent stake in Delhivery while Nexus Venture Partners owns around 25 per cent.
In 2015, Delhivery had raised $85 million in a series D round of investment led by Tiger Global and and existing investors Multiples, Nexus Venture Partners and Times Internet Ltd in May 2015. Prior to this its had raised $35 million in its Series C round led by Multiples Alternate Asset Management Private Ltd.
Recently, logistics companies have attracted increased investor attention. It was recently reported that Warburg Pincus-backed Ecom Express is in talks to raise at least $75 million in a new round of funding, which could also see existing private equity investor Warburg Pincus is likely to bring in another $75 million, taking planned funding to a total of $150 million.
Ecom Express and Delhivery, besides Flipkart-owned Ekart, are among the largest delivery firms focused on e-commerce in India. In June 2015, Warburg Pincus agreed to invest $133 million in Ecom Express.
In November, Warburg had also invested $75 million (Rs500 crore) in Gurgaon-based logistics services provider Rivigo for a minority stake.
Founded in 2011, the Delhivery claims to have services 600 cities with a network of 12 fulfilment centres and works with companies like Flipkart and Paytm.
According to the news report, for the year ended March 2016, Delhivery reported losses of Rs 317 crore, up from Rs 71 crore in the previous year, while its revenues more than doubled to Rs 495 crore from Rs 228 crore during the same period.
“This is a fraction of the China delivery market where close to 75-80 million packages are shipped daily. As an investor in ANE Technologies, we will share our learning in express deliveries and LTL (less than load, implying small freight) with the company,” said Neeraj Bharadwaj, managing director at Carlyle Group in India told the news paper
Besides ANE Technologies, Carlyle has also invested in its portfolio firm China Logistics Property Holdings Co that launched an IPO in Hong Kong in August last year.
“In India, 70% of the e-commerce market is mobile and electronics. If you look at markets worldwide, categories like apparel, home decor, grocery, furniture form a larger share in a mature market. We believe these categories will grow in India, accelerating the need for third party logistics players,” Bharadwaj said.
By Vivian Foo, VCNewsNetwork