SoftBank looks to increase stake in Delhivery; seeks competition nod

Published: October 1, 2019 1:48:20 PM

SoftBank’s shareholding in Delhivery would increase to 25.72%, if its proposal to raise equity in the logistics firm is approved.

japan, softbank, soft bank, delhivery, indian startup, logistic service in indiaEarlier this month, the Canada Pension Plan Investment Board (CPPIB) had acquired an eight percent equity in Delhivery for 5 million from an existing investor.
  • Anushree Bhattacharyya 

Japan’s SoftBank Vision Fund in a new filing has sought the permission of the Competition Commission of India (CCI) to increase its stake in logistics start-up Delhivery, according to regulatory documents sourced by business intelligence platform Paper.vc. If and when approved by the CCI, the transaction would result in an increase in Softbank’s shareholding to a proposed 25.72% from the current holding of 22.44%. As per the filings, a secondary transaction has been proposed. “The purchase of shares from an existing shareholder or shareholders constituting 3.28% of the fully diluted capital of the company,” revealed the documents.

Earlier this month, the Canada Pension Plan Investment Board (CPPIB) had acquired an eight percent equity in Delhivery for $115 million from an existing investor. The company at the time, however, did not disclose the name of the seller. It is understood that CPPIB had bought the stake at a valuation of around $1.5 billion. The company’s valuation hasn’t changed in recent months.

Furthermore, earlier this year, Delhivery had raised $413 million from Softbank at a post-money valuation of $1.5 billion. Post the transaction, Softbank became the largest shareholder in Delhivery followed by Tiger Global and Nexus Venture Partners with 15.38% and 14.77%, respectively.

According to several reports, the logistics firm in July this year had allotted 11,000 ESOPs to 18 employees under Delhivery employee stock option plan 2012 (as amended on March 8, 2019). As per regulatory filings, it had in total alloted 11,614 shares worth $1,26,600. Employees who have received ESOPs include senior directors, VPs and engineers. SoftBank has been a leading investor in India and its investment ranges from OYO to Grofers, Delhivery, among others.

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