IPO-bound logistics firm Delhivery has made an investment in Falcon Autotech, a Noida-based maker of warehousing automation products.
The investment is likely to range between $20 million and $30 million, according to sources close to the deal. Delhivery, however, declined to comment on the details of the transaction.
Falcon Autotech offers intralogistics automation solutions and sortation systems among other services in the logistics and warehousing space.
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.
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In November last year, Delhivery
filed its draft prospectus with the Securities and Exchange Board of India for a Rs 7,460 crore initial public offering. The company is seeking a valuation of around $6-6.5 billion for its listing, ET had reported at the time.
Existing investors including private equity fund Carlyle, Japan’s SoftBank Vision Fund and Times Internet are selling partial stakes, according to the filing. Kapil Bharati, Mohit Tandon and Suraj Saharan — who are among the five founders of Delhivery — are also listed to sell shares through the IPO.
Times Internet is part of the Times Group, which publishes The Economic Times.
Besides providing an exit to investors and employees, the IPO will help the company raise capital for its business initiatives. According to the IPO prospectus, Delhivery aims to use around Rs 2,500 crore for organic growth initiatives while Rs 1,250 crore will be earmarked for funding inorganic growth through acquisitions and other strategic initiatives.