Latest News | Delhivery Acquires Spoton to Boost B2B Capabilities
Get latest articles and stories on Latest News at LatestLY. Logistics major Delhivery on Wednesday said it has acquired Bengaluru-based Spoton Logistics, a move aimed at further strengthening its B2B capabilities.
New Delhi, Aug 25 (PTI) Logistics major Delhivery on Wednesday said it has acquired Bengaluru-based Spoton Logistics, a move aimed at further strengthening its B2B capabilities.
The financial details of the transactions were not disclosed.
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"This development is consistent with our objective of being growth-oriented and building scale in each of our business lines. Over 10 years, Delhivery has established a leading position in B2C logistics, and now by combining our part truckload business with Spoton''s we will be on the path to the same position in B2B express as well," Delhivery Chief Executive Officer Sahil Barua said.
He added that Delhivery is well-placed to provide benefits of synergies between its B2C and B2B express businesses to the customers of both Delhivery and Spoton, and further enhance its end-to-end supply chain capabilities.
Spoton Logistics started its journey in 2012 when private equity firm India Equity Partners bought the domestic business from TNT India. In 2018, Spoton partnered with a consortium of investors led by Samara Capital and Xponentia Fund Partners to build the next stage of its growth.
Samara Capital and Xponentia that together had acquired Spoton from IEP in 2018, are making a full exit for cash as part of the latest transaction.
In a separate statement, Samara Capital and Xponentia Capital said they had held the investment for a period of three years and “the investment performance exceeds typical IRR (internal rate of return) and Money Multiple expectations' '.
In the last three years, Spoton acquired RTS (a supply chain solutions business), set up two new verticals focused on 'Air express' and 'non-corporate customers' that significantly expanded the company's capabilities and product offerings.
“As a consequence, net sales and EBITDA of Spoton grew at a CAGR of about 24 per cent and about 30 per cent, respectively,” the statement noted.
Gautam Gode and Abhishek Kabra were the nominee directors representing Samara Capital, while PR Srinivasan and Devinjit Singh were the nominee directors representing Xponentia Capital on the board of Spoton.
“Spoton achieved high growth by leveraging technology to set new standards in the industry. After being spun off in early 2012 with revenues of less than Rs 12 crore a month, the company has been able to grow close to Rs 1,000 crore a year, due to the emphasis on technology and data analytics,” Xponentia Capital Managing Partner PR Srinivasan said.
The acquisition of Spoton comes at a time when Delhivery is looking at heading towards the public markets.
In December last year, Delhivery had said Steadview Capital had bought USD 25 million (about Rs 184 crore) worth of secondary shares from one of its early investors. At that time, Delhivery had said it was looking at bringing in an IPO in the next 12-15 months.
Spoton Logistics Managing Director Abhik Mitra said the Spoton team is excited to be part of Delhivery's journey of “growth and value-creation".
"Our teams and our business partners will have an opportunity to be part of a much larger organisation with significant opportunities for growth," he said.
The focus will continue to be on improving clients'' businesses through investments in people, technology, network, and infrastructure, he 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," Sandeep Barasia, Chief Business Officer of Delhivery, said.
Kotak Mahindra Capital Company acted as the financial advisor and Shardul Amarchand Mangaldas & Co. acted as the legal advisor to Delhivery on this transaction.
Delhivery, which has a nationwide network covering over 19,400 pin codes, provides a full suite of logistics services such as express parcel transportation, reverse logistics, cross-border, B2B and B2C warehousing, and other services.
It has fulfilled over one billion shipments since its inception and works with over 17,000 customers, including large and small e-commerce companies, SMEs ( Small and medium-sized enterprises), and others.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)