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IPO-bound Delhivery inks $200 mn deal to acquire rival Spoton Logistics

IPO-bound Delhivery inks $200 mn deal to acquire rival Spoton Logistics

The logistics startup, backed by marquee investors such as Carlyle, Softbank, and Tiger Global Management has sealed the $200 million deal to acquire a 100% stake in the rival logistics player

Delhivery has entered into equity and commercial agreements with Spoton Logistics Delhivery has entered into equity and commercial agreements with Spoton Logistics

IPO-bound Delhivery has inked an agreement to acquire Spoton Logistics. The logistics startup, backed by marquee investors such as Carlyle, Softbank, and Tiger Global Management has sealed the $200 million deal to acquire a 100% stake in the rival logistics player.

"The deal has been signed. Delhivery is keen to scale up ahead of its much-anticipated market debut," a source told Moneycontrol. 

FedEx Express, a subsidiary of global delivery services giant FedEx Corp, had recently infused $100 million in Delhivery. 

Also Read: Delhivery raises $277 million ahead of IPO; now valued at $3 billion

The company has entered into equity and commercial agreements with the homegrown logistics and supply chain startup, that will utilise their combined strengths to unlock India's international trade potential, FedEx Express said in a statement announcing the deal on July 16.  

"The deal valuation is around $200 million, and it will facilitate an exit for the promoter private equity funds Samara Capital & Xponentia Fund Partners," another source told the publication adding that the deal likely to concluded in the next 2-3 weeks. 

In 2018, a consortium of Xponentia Fund Partners and Samaara Capital acquired Sporton Logistics for approx. Rs 550 crore. 

Also Read: Delhivery secures $100 mn from FedEx subsidiary ahead of IPO

With the deal, PE firm India Equity Partners entirely exited the company. 

Founded in 2011, Delhivery logged a loss of Rs 284 crore during FY2020. It fell from Rs 1,781 crore in FY2019. The revenue of the company increased by 74% to Rs 2,986 crore during FY20.