Delhivery, an IPO-ready logistics firm, has invested in Falcon Autotech, a Noida-based manufacturer of warehousing automation products.
According to sources close to the deal, the investment will likely range between $20 million and $30 million. However, Delhivery declined to comment on the transaction’s specifics.
Falcon Autotech provides intralogistics automation solutions, sortation systems, and other logistics and warehousing services.
Delhivery said the deal is in line with its strategy to invest in “future-ready” hardware solutions in its operations. The Gurugram-headquartered company had earlier acquired Spoton Logistics to strengthen its business-to-business (B2B) vertical in a $300 million all-cash deal, as reported by ET. In December, Delhivery also acquired California-based drone startup Transition Robotics Inc.
“The collaboration with Falcon Autotech strengthens our ability to drive greater speed, precision, and efficiency across our business lines,” said Ajith Pai, Delhivery’s chief operating officer. The partnership will also enable the bundling of hardware automated solutions along with Delhivery’s SaaS (software-as-a-service) platform, one of the proposed growth verticals for the company in national and international markets, as per Delhivery.
“This investment is a testimony to Falcon’s commitment to our customers, our design, technology, and delivery capabilities, and the product roadmap ahead,” said Naman Jain, chief executive, Falcon Autotech.
Delhivery filed its prospectus for a Rs 7,460 crore initial public offering with the Securities and Exchange Board of India in November of last year. According to ET, the company is looking for a valuation of $6-6.5 billion for its IPO.
According to the filing, existing investors such as private equity firm Carlyle, Japan’s SoftBank Vision Fund, and Times Internet are selling partial stakes. Kapil Bharati, Mohit Tandon, and Suraj Saharan, three of Delhivery’s five founders, are also listed to sell shares through the IPO.
The IPO will help the company raise capital for its business initiatives, in addition to providing an exit for investors and employees. According to the IPO prospectus, Delhivery intends to use approximately Rs 2,500 crore for organic growth initiatives, with the remaining Rs 1,250 crore earmarked for inorganic growth through acquisitions and other strategic initiatives.
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