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Canadian Pension Fund CPPIB set to Invest $150 million in Delhivery

Canada Pension Plan Investment Board (CPPIB) is all set to invest $150-million (Rs 1,040-crore) in the Gurgaon-based logistic firm Delhivery, according to report published in Economic Times (ET). The investment will take place through secondary market investment that will pave way for existing investor Multiples Alternate Asset to dilute its stake. ET report also claims that another investor Nexus Venture Partners may also dilute its stake through this secondary investment.

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CPPIB set to pick 8% stake in Delhivery

The deal will give CPPIB nearly 8% stake in Delhivery, according to people privy with the matter. The company will command market valuation of $1.5 Bn after the deal is completed, sources added.

Investment in Delhivery will mark CPPIB’s second investment in an Indian startup. Last year in December, the world-renowned pension fund made investment debut in India by participating in $322 million funding round for edtech startup Byju’s.

CPPIB, which is the largest pension fund in North America, has over the years been devotedly focused on emerging market region. Reports claim that the Toronto based investment company has allocated nearly C$8.2 billion for making investment in India.

Delhivery’s good funding spell continues

CPPIB’s secondary investment will be Delhivery’s second fundraising spell in the current year. The first spell, which has led by Japanese investment giant SoftBank, helped the Gurgaon company in earning the coveted unicorn tag. The round helped the logistic firm in fetching $400 MN.

Over the years, the company has been trying to reduce its dependency on e-commerce business. Mostly due to the fact that today e-commerce delivery market is completely dominated by Flipkart and Amazon’s in-house logistic companies. Their domination accounts for nearly 50% of the market and this ruthless dominance obviously makes its very tough play for rest of the third party logistic players.

Today Delhivery offers standard logistic services like express parcel transportation, freight, reverse logistics, cross-border, business-to-business, business-to-consumer so and so forth.

The company claims to ships 500,000 parcels every day. It posted revenue of Rs 1,070.80 crore against loss of Rs 684.45 for the financial year 2018, as per the latest filings filed with ROC.


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