SoftBank sells 3.8% stake in logistics startup Delhivery for $116m

Japanese investment group SoftBank has raised Rs954.24 crore (about $115.67 million) from the sale of a 3.8% stake in Indian logistics startup Delhivery, according to media reports.

Block deal data available with the Bombay Stock Exchange showed that SoftBank sold 2.8 crore shares at an average price of Rs340.8 apiece in eight transactions, taking the aggregate value to Rs954.24 crore.

The buyers of the shares include the Saudi Arabian Monetary Authority, City of New York Group Trust, Societe Generale, BNP Paribas Arbitrage, Morgan Stanley Mauritius, and Baillie Gifford Emerging Markets Equities Fund, VCCircle reported.

The divestment leaves the Japanese conglomerate with a 14.62% stake in Delhivery. SoftBank is the single largest public stakeholder in the logistics company through its subsidiary Svf Doorbell Ltd.

The company raised $675 million in its market debut in May 2022, making it India’s second-largest initial public offering last year. The logistics startup and its shareholders initially had been seeking to raise about $1 billion but trimmed the IPO size.

Founded in 2011, Delhivery handles more than 1.5 million packages a day through its 43,000-strong team across India, according to its website. It became a unicorn in 2019 when it raised $413 million in a Series F round led by SoftBank Vision Fund and completed a series H funding round in June led by Fidelity.

Delhivery competes with DHL’s unit Blue Dart Express and DTDC India in a sector that had a direct spend of $216 billion in fiscal 2020 and is expected to grow to $365 billion by fiscal 2026.

It provides a wide range of logistics services, including delivery of express parcels and heavy goods, PTL freight, TL freight, warehousing, supply-chain solutions, cross-border express, freight services, and supply-chain software.

Last month Tiger Global Management also sold a 1.7% stake in Delhivery through the open market for Rs 414 crore. Venture capital firm Internet Fund III Pte, through which Tiger Global holds a stake in the logistics services provider, sold 1,23,63,060 shares at Rs 335.06 apiece.

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