India's Delhivery buys PE-owned Spoton Logistics
Indian e-commerce logistics Delhivery has acquired Spoton Logistics, a private equity-owned express logistics and supply chain business, with a view to strengthening its B2B capabilities.
Spoton was established in 2012 when India Equity Partners completed a carve-out TNT’s India express business. Six years later, the company was acquired by Xponentia Fund Partners – a private equity firm founded by three former CVCI executives – and Samara Capital at a valuation of INR5.5 billion ($78 million). This was Xponentia’s debut deal.
Headquartered in Bangalore, Spoton covers more than 22,000 pin codes nationwide through a network of 13 depots and 35 transit hubs. It primarily serves customers in the hi-tech, automotive, engineering, pharmaceutical, electronics, and lifestyle and retail industries.
Delhivery has received over $1.2 billion in funding from The Carlyle Group, Tiger Global Management, Fosun Group, SoftBank Vision Fund 1, Steadview Capital, Nexus Venture Partners, and Multiples Alternative Asset Management. This year it raised $277 million from Baillie Gifford, Chimera Financial Investments, Fidelity, and GIC, and then $100 million from FedEx ahead of an expected IPO.
The company is an end-to-end logistics and supply chain services provider that has completed more than one billion shipments since inception and works with over 17,000 customers. It delivers 1.5 million packages a day through 20 automated sorting centers, 67 fulfillment centers, 68 logistics hubs, 2,300 direct delivery centers, and 7,000 delivery partner facilities.
Areas of coverage include express, less-than-truckload (LTL), and full-truckload (FTL) transportation, reverse logistics, cross-border shipments, B2B and B2C warehousing, and technology services.
Sahil Barua, CEO of Delhivery, said in a statement that the Spoton acquisition is consistent with his ambition to build scale across each business line. Delhivery has essentially found a shortcut route into B2B through the combination of its existing B2C LTL business with Spoton’s similar B2B operation.
Sandeep Barasia, chief business officer of Delhivery, added: “This is a coming together of two high-quality companies with shared values. Our combined scale and focus on technology and data will enable us to develop new solutions for our customers and allow us to enter new verticals in freight."
Kotak Mahindra Capital was Delhivery’s financial advisor on the transaction, while Shardul Amarchand Mangaldas acted as legal counsel.
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