CCI approves Kedaara Capital's proposal to acquire stake in Porter

The Competition Commission of India (CCI) on Tuesday approved private equity firm Kedaara Capital's proposal to acquire a stake in Bengaluru-based on-demand logistics player Porter.

"CCI approves the acquisition of a certain stake in SmartShift Logistics Solutions Pvt Ltd jointly by Kedaara Sapphire Holding and Kedaara Capital Fund IV AIF," the competition watchdog said in a post on X.

A month ago, the CCI cleared US-based Wellington Management's proposal to invest in the logistics unicorn.

Earlier in May, SmartShift Logistics Solutions—the parent company of Porter—raised $200 million in a Series F funding round co-led by Kedaara Capital and Wellington Management at a valuation of $1.2 billion.

Kedaara Capital invested through its affiliates Kedaara Sapphire Holding and Kedaara Capital Fund IV AIF, while investment management firm Wellington Management did it through its affiliate Wellington Hadley Harbor AIV II Master Investors (Cayman) III.

The Uttam Digga-led company had said the fresh funds will help expand its operations across various cities, team expansion, technological development, and operational excellence.

The investment, a mix of primary and secondary transactions, led to immense gains for early investors like Peak VX Partners and Kae Capital.

According to a report by Mint, Peak XV Partners secured a windfall of over Rs 1,200 crore ($140 million) by fully exiting its investment in Porter during the company’s latest funding round. The exit marked an over 11-fold return on the Rs 116 crore the firm had invested across multiple rounds over the past decade.

(With additional inputs from PTI)