Canadian pension fund CPPIB plans to invest $150 mn in logistics firm Delhivery for 8% stake

In March this year, Piramal Enterprises had said it signed an initial pact with CPPIB to co-sponsor a $600 million renewable energy-focused infrastructure investment trust (InvIT).

FP Staff June 13, 2019 16:55:17 IST
Canadian pension fund CPPIB plans to invest $150 mn in logistics firm Delhivery for 8% stake
  • Nexus Venture Partners, an early investor in Delhivery, is also expected to liquidate some of its shareholdings

  • In March this year, Delhivery raised more than $400 million in a financing round led by SoftBank Vision Fund

  • In December last year, Naspers, CPPIB had invested $540 mn in online education startup Byju's

Canada Pension Plan Investment Board (CPPIB) is planning to invest about $150-million (Rs 1,040-crore) in the new-age logistics company, Delhivery, according to a media report.

CPPIB, a professional investment management organisation, is buying the shares from domestic private equity firm Multiples Alternate Asset Management, said a report in The Economic Times quoting two people familiar with the deal. Accordingly, CPPIB will pick up a stake of nearly 8 percent in the Gurgaon-based company.

Venture capital firm Nexus Venture Partners, an early investor in Delhivery, is also expected to liquidate some of its shareholdings, the report said.

Canadian pension fund CPPIB plans to invest 150 mn in logistics firm Delhivery for 8 stake

Representational image. News 18.

In March this year, Delhivery had raised more than $400 million (Rs 2,766.82 crore) in a financing round led by the SoftBank Vision Fund.

Carlyle and Fosun, both existing investors in Delhivery, have also participated in this round of financing, the company said in a statement.

"With these funds, Delhivery plans to rapidly scale up its reach from 15,000 to 20,000 pin codes by the first quarter of the financial year 2019-20, aggressively grow e-commerce market share investment, and expand its end-to-end supply chain platform to enterprise customers and SMEs (small and medium enterprises)," the company added.

In March this year, Piramal Enterprises had said it signed an initial pact with CPPIB, one of the world’s largest retirement funds, to co-sponsor a $600 million renewable energy-focused infrastructure investment trust (InvIT).

"With an initial corpus of $600 million( about Rs 4,162 crore), and the option to scale further, the InvIT would seek to acquire up to 1.5-2 GW of stable and cash generating renewable assets on a hold-to-maturity basis, with a firm focus on diversification of both asset type as well as off-taker profile," Piramal Enterprises said in a release.

Both Piramal Enterprises and CPPIB will act as co-sponsors of the proposed InvIT and hold up to 75 percent of the units.

The Canadian pension fund had committed $360 million and holding up to 60 percent while Piramal Enterprises has committed $90 million and holding 15 percent.

In December last year, online education startup Byju's had raised $540 million (Rs 3,865 crore) in funding, led by Naspers with a significant portion also being contributed by the CPPIB.

The new round of funding will drive innovation for tech-enabled learning products and also fuel plans for international market expansion for Byju's, a statement said.

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