The Canada Pension Plan Investment Board (CPPIB) looks ahead to investing a staggering $150 million for an 8 per cent stake in Delhivery, an Indian logistics service provider. The news has come in via a report from ET.
The deal will go through a secondary stake sale valuing Delhivery at $1.5 billion. A part of the shareholding will reportedly be divested by existing investors Nexus venture partners. The secondary stake would be undergone after acquiring necessary approvals as per reports.
This investment isn’t the first one by the CPPIB. It has been making way and eyeing emerging startups in the Indian market. Dating last year in December, it had been a part of $400 million round raised by the Bangalore based education tech giant Byju’s.
The CPP Investment Board invests in major sectors including private equity, public companies and real estate. Making their first direct office investment in Seattle in 2016, CPPIB now has an office in Mumbai.
The Canadian pension fund has invested a whooping $8.2 billion in India as of the end of 2018 with a focus on infrastructure, real estate and financial services in the past decade. India at present makes up 2 per cent of its global portfolio.
CPPIB at present manages $392 Bn in assets and is said to claim a 11.1% 10-year annualized rate of return. As per now it has invested $103.7 Bn in the Asia Pacific, which is major 26.5% of the total assets.
Founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan and Kapil Bharati, Delhivery is currently operating in over 1,200 cities in India. Having funded from Tiger Global Management, Multiples, Carlyle Group, Fosun Group, Nexus Venture Partners, the Gurugram-based company now has 30 fulfillment centers and over 2,500 delivery partners and 19 automated sorting centers that drive its operations
The logistic firm has been successful in raising a total of $669.6 million in funding till date. Out of which a grand $400 million was acquired in a financing round led by SoftBank Vision Fund which currently holds 23 % of stake in the logistics firm.
The logistics company is now leaning away from eCommerce by expanding into areas like cross-border, business to-business logistics etc. The company shares major rivalry between the logistic giants Flipkart’s Ekart and Amazon ATS which have been dominating by having a 50% control over the market.