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CPFB picks up 8% stake in Delhivery for USD 115 Mn

The Competition Commission of India had approved the transaction last month.

Sep 10, 2019 by The Passage Team
CPFB picks up 8% stake in Delhivery for USD 115 Mn

Canada Pension Plan Investment Board has acquired an 8% stake in logistics company Delhivery Pvt. Ltd in exchange for USD 115 million from an existing investor.

“The continued strong growth of e-commerce 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," Deborah Orida, CPPIB’s senior managing director and global head of active equities, said in a statement. CPPIB will receive a seat on Delhivery’s board.

The Competition Commission of India had approved the transaction last month.

“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 and head of international at CPPIB said, Mint reported.

“We are delighted to welcome CPPIB as a new partner for our next phase of growth alongside our existing partners," Sahil Barua, Delhivery's CEO, said in a statement. He said CPPIB’s investment coincides with a major milestone, as it nears 500 million in cumulative shipments to date.

In the past year, Delhivery has traversed 17,500 pin codes across India, launched three new businesses and hired over 10,000 employees while delivering strong financial returns to its early investors, Barua said.

In March, Delhivery had raised USD 413 million in Series F round led by SoftBank Vision Fund putting the logistics startup in the unicorn club with a valuation of USD 1.5 billion.

Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan and Kapil Bharati founded Delhivery in 2011. It operates across 2,000 cities, offering a full range of logistics services, including express parcel transportation, freight, business-to-business and business-to-consumer warehousing and technology services. Delhivery's major competitors include E-com Express, Blue Dart, Xpressbees and Shadowfax.

CPPIB had participated in Byju’s USD 300 million funding round in December last year.

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