Gurugram-based logistics startup Delhivery, which is yet to file its IPO papers, has raised $76.4 million as part of a Series I funding round led by Lee Fixel’s venture Capital firm Addition.
The announcement comes two weeks after it acquired Bengaluru-based Spoton Logistics for an undisclosed amount in an attempt to strengthen its B2B operations.
Lee Fixel is one of the well-known American startup investors. Between 2006 and 2019, He was linked with the New York-based hedge fund Tiger Global. In mid-2019, Fixel launched its own investment firm, Addition, which has already made investments in Indian startups like Inshorts and Jupiter Money.
According to the regulatory filings, Delhivery has issued 146,961 Series I Compulsory Convertible Preference Shares (CCPS) to Addition LLC at a price of 37,900 per share.
Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati, and Suraj Saharan founded Delhivery in 2011. It offers express parcel delivery, LTL and FTL freight, reverse logistics, cross-border, B2B and B2C warehousing, end-to-end supply chain services, and technology services, among other things.
The logistics platform connects shippers, agents, and drivers who provide road transportation services. Since its establishment, the company claims to have completed over 850 million transactions and works with over 10,000 direct customers, including SMEs and enterprises.
Two of the company’s co-founders — Manglani and Tandon — have already stepped out of the company, reportedly, to meet regulatory requirements before starting their initial public offering (IPO) process. The company is reportedly planning to go public in 2021.
Delhivery has raised over $1.3 billion to date from marquee investors like SoftBank, Tiger Global, Times Internet, The Carlyle Group, and Steadview. It turned into a unicorn, a startup valued over a billion, in 2019.
Earlier in June 2021, Delhivery Co-founder and CEO Sahil Barua said that the company is set $400-500 million via IPO which is expected to be launch by March 2022.
According to research reports, the Indian logistics market reached an estimated size of $215 billion in 2020, growing at a CAGR of 10.5 percent, with only about 15 percent representing the organized segment.