[Funding alert] CPPIB invests $115M in logistics unicorn Delhivery

The Canada Pension Plan Investment Board (CPPIB) on Monday said it has invested close to $115 million in Gurugram-based logistics unicorn Delhivery, broadening its exposure in the logistics sector in India.  

The investment was made through CPPIB’s Fundamental Equities Asia (FEA) Group, which performs fundamental research and invests in quality corporates for the long term throughout Asia.

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It was earlier reported in June, by the media, that CPPIB was in the process of making a $150 million secondary market investment for a reported eight percent stake in the logistics startup. Further, the deal was approved by Competition Commission of India (CCI) last month.   

Following the investment, CPPIB will have one seat on Delhivery’s Board.

Speaking on the fund raise, Deborah Orida, Senior Managing Director and Global Head of Active Equities, said,

“The continued strong growth of ecommerce has generated significant opportunities in India’s express logistics space for long-term investors such as CPPIB, and we are pleased to partner with a market leader. This investment in Delhivery builds on our Fundamental Equities Asia group’s strategy to provide strategic capital to high-quality companies in the region.”

Third-party logistics provider Delhivery currently operates in more than 2,000 cities (across more than 17,500 pincodes) offering a full range of supply chain services.

In March, Delhivery raised $413 million Series F round led by SoftBank Vision Fund, along with existing investors Carlyle Group and Fosun International at a valuation of $1.5 billion, making the company a part of the Indian unicorn list.  

Speaking on the latest fund raise by CPPIB, Sahil Barua, Delhivery’s Founder & CEO said,

"We are delighted to welcome CPPIB as a new partner for our next phase of growth alongside our existing partners. The last year has been particularly exciting for us at Delhivery. We have crossed 17,500 pincodes across India, launched three new businesses, created over 10,000 new jobs and delivered handsome financial returns and liquidity for our early risk investors, while bringing in an incredible new set of patient partners who will continue to back us on our long-term ambition of becoming the operating system for commerce in India.”  

Sahil also added that the company has crossed over 500 million in cumulative shipments to date.

 “CPPIB has been active on the ground in India for nearly a decade and we continue to pursue opportunities to invest in the country as part of our focus on emerging markets. In Delhivery, we have found a highly reputable partner who fits well with our focus on supporting high-growth businesses,” said Alain Carrier, Senior Managing Director & Head of International, CPPIB.

As of June end this year, CPPIB’s total equity investments in India was up to $7.5 billion or (Canadian $9.9 billion) across all asset classes.

Delhivery today works with over 10,000 direct customers, which includes large and small ecommerce participants, SMEs, and over 350 leading enterprises and brands.

(Edited by Megha Reddy)

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