“E-commerce Logistics firm “Delhivery” to raise up to Rs.175 crore”: “PE’s interest in Ancillary Service providers” | ET Retail

E-commerce Logistics services company ” Delhivery “ is in the final stages of negotiations to raise up to Rs 175 crore in fresh funding, a development that comes at a time when a number of India’s Top Private Equity funds are betting big on the country’s Digital-commerce sector….!!

The company has had discussions with a number of blue-chip private-equity firms, a list that also includes marquee growth-stage risk capital investor Warburg Pincus, and a deal is expected to be finalised by mid-June, according to sources with direct knowledge of the talks…

If successful, this will be Delhivery’s third round of equity funding….In September last year, it raised about Rs 35 crore from Nexus Venture Partners, having raised an undisclosed sum from Times Internet Ltd earlier in 2012….The existing venture capital backers are also expected to participate in the new round…

Warburg Pincus recently made the news when it led a Rs 550 crore round of funding in online and mobile classifieds company Quikr in March. Avendus Capital, a leading investment bank, has been given the mandate to structure the transaction. While Sahil Barua, co-founder of Delhivery, and Warburg Pincus refused to comment, emails sent to Avendus Capital did not elicit any response…!!

A potential transaction could value Delhivery at over Rs 500 crore. A number of India’s top private equity firms with a consumer #BusinessFocus but are yet to invest in E-commerce have highlighted their interest in investing in companies that provide services such as Payments, Logistics, #Reverse-Logistics, #Packaging and #SupplyChainManagement…

“We don’t have a preference for businesses that focus on core merchandising…We would rather look at Logistics and Payment-related businesses, which go right across the space,” said managing partner, Tata Capital Growth Fund (TCGF)…!!

The shift is largely driven by the relatively lower valuations and smaller amounts of capital required by #AncillaryServiceProviders, with average deal sizes of Rs 50 crore to Rs 150 crore…!!

“We will consider investments in E-commerce. We haven’t so far, because a number of those businesses are yet to mature to a point where we, as a late stage investor, are comfortable investing in them…

BillDesk, where we have invested, is a classic example of a company that has been a direct beneficiary of what’s happening in the broader consumer internet space,” said.. India head of global private equity firm TA Associates…!!

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