Delhivery to acquire express logistics rival Spoton for $200 million

August 2, 2021: The IPO bound new age domestic logistics giant and supply chain firm, Delhivery, backed by the likes of Softbank, Tiger Global Management and Carlyle, has signed an agreement to acquire a 100 percent stake in rival express logistics player Spoton Logistics.

“The deal has been signed. Delhivery is keen to scale up ahead of its much-anticipated market debut,” as reported by Moneycontrol. 

Recently FedEx had announced an investment of $100 million and signed commercial agreements with Delhivery.  

The deal valuation is around $200 mn and it will facilitate an exit for the promoter private equity funds Samara Capital & Xponentia Fund Partners while the deal is likely to be closed in the next 2-3 weeks.

In August 2018, a consortium of Samaara Capital and Xponentia Fund Partners purchased Spoton Logistics for around ₹550 crore. PE firm India Equity Partners completely exited the firm with this deal.

Founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Kapil Bharati and Suraj Saharan, Delhivery reported a loss of ₹284 crore during the financial year 2019-2020. It came down from ₹1,781 crore in the financial year 2018-2019. The revenue increased 74 percent to ₹2,986.4 crore during the financial year 2020.

Spoton Logistics started its journey in 2012 when India Equity Partners bought the domestic business from TNT India. It has a team of more than 1600 plus employees and operates a pan India network covering 300+ locations and over 22,000+ pin codes. It has 13 major depots and 35 transit hubs to facilitate the timely and secure movement of goods. It serves an array of sectors viz. hi-tech, automotive, engineering, pharmaceutical, electronics & electricals and lifestyle & retail.