Leading e-commerce logistics giant Delhivery has acquired Bengaluru-based Spoton Logistics to strengthen its business-to-business (B2B) vertical ahead of a planned initial public offering (IPO).
The company did not disclose the financial terms of the Delhivery-Spoton deal, but sources in the know said the acquisition was an all-cash transaction worth US$300 million.
“This development is consistent with our objective of being growth-oriented and building scale in each of our business lines,” Sahil Barua, Chief Executive Officer of Delhivery was quoted saying.
“Over the last 10 years, Delhivery has established a leading position in B2C logistics, and now by combining our truckload business with Spoton’s, we will be on the path to the same position in B2B express as well.”
Spoton started its journey in 2012 when private equity firm India Equity Partners bought the local business from TNT India.
“We will continue to invest in improving our clients’ businesses through our investments in people, technology, network and infrastructure,” Spoton Logistics’ Managing Director Abhik Mitra had said to the media.
“Our teams and our business partners will have an opportunity to be part of a much larger organisation with significant opportunities for growth.”
Kotak Mahindra Capital Co Ltd acted as the financial adviser and Shardul Amarchand Mangaldas & Co as legal adviser to Delhivery for this transaction.
Pankaj Kalra, Senior Executive Director at Kotak Investment Banking had said that the acquisition of Spoton Logistics will help Delhivery emerge as one of the largest express less-than-load solution providers in India and serve new clients and industries.
“With more than 1,000 logistics companies in the country, we believe that the US$300 billion logistic industry stands on the cusp of consolidation.”
“We expect only 8-10 large logistics firms to dominate the market. This transaction is another step in this direction.”
