delhivery: Exclusive: Fosun sells part of its stake in Delhivery to Lee Fixel’s Addition
This is part of a
$125 million fundraise from Addition that the company announced last month.
IPO-bound Delhivery was valued at around $3.2 billion in the primary round, while the secondary share sale was at a significantly higher price, said people in the know. In a secondary share sale, the money does not flow into the company directly but goes to investors selling their stakes.
“This is part of the secondary round in Delhivery, where China’s Fosun has sold 1.32% of its stake in the company,” a person with knowledge of the development said. Prior to this transaction, Fosun held around 3.8% in the company.
A person familiar with the deal details said Addition invested $75 million in primary capital, while the rest – $50 million – was in the form of a secondary transaction.
“Fosun is looking to sell its entire stake ahead of Delhivery’s proposed IPO,” another person said.
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Fosun International, a Chinese conglomerate that invested in Delhivery in 2017, has sold a part of its stake in the logistics firm for $50 million, sources told us, and could exit the startup completely before its IPO.
The Chinese investor may dilute its entire holding during the offer for sale (OFS) which the company is expected to undertake prior to its listing, a third source added.
looking to raise $1 billion from its listing later this financial year. “It is targeting a valuation of around $6-$7 billion for its IPO,” another person said.
Spokespersons for Delhivery and Fosun did not respond to ET’s queries.
Delhivery had raised Rs 200 crore ($30 million) from Fosun International as part of a larger funding round, valuing the company at $650 million at that time, ET had reported.
Times Internet, part of The Times of India Group which also publishes this newspaper, is an early investor in Delhivery.
The Gurugram-based company, backed by SoftBank Vision Fund and Carlyle Group Inc,
secured $100 million from strategic investor FedEx Express in August. In June, the 10-year-old company said it had
raised $275 million from investors led by GIC and Fidelity.
Generally, before an IPO, early investors in a company cash out and the cap table realigns with long-term late-stage funds coming into the company to set the valuation benchmark. In the case of Fosun, sources said, owing to the geopolitical issues related to Chinese investments in Indian companies, it is looking to cash out ahead of the listing.
Delhivery has issued bonus shares to shareholders ahead of filing its draft prospectus with the capital markets regulator, regulatory documents showed.
According to the filings to the Ministry of Corporate Affairs which ET has accessed, the company said on Sunday that it had in an extraordinary general meeting (EGM) held on September 29 decided to allot 16.8 million bonus shares to equity shareholders in the ratio of 9:1.
ETtech IPO Watch: A decade of Delhivery
Around 90 individuals and entities have been listed as recipients of these bonus shares, the documents showed.
The EGM also passed a resolution to allot more stock options under the Employee Stock Ownership Plan (Esop) scheme to eligible past and current employees.
Founded by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati, the end-to-end logistics and supply chain services company has fulfilled over a billion shipments with over 17,000 customers, including large and small ecommerce participants, and small and medium enterprises.