AUGUST 25, 2021Article Originally Posted By: moneycontrol.com
Logistics major Delhivery on Wednesday said it has acquired Bengaluru-based Spoton Logistics, a move aimed at further strengthening its B2B capabilities.
Financial details of the transactions were not disclosed.
"This development is consistent with our objective of being growth-oriented and building scale in each of our business lines. Over 10 years, Delhivery has established a leading position in B2C logistics and now by combining our part truckload business with Spoton's we will be on the path to the same position in B2B express as well," Delhivery CEO Sahil Barua said.
He added that Delhivery is well-placed to provide benefits of synergies between its B2C and B2B express businesses to the customers of both Delhivery and Spoton, and further enhance its end-to-end supply chain capabilities.
"The Spoton team and I are hugely excited to be part of Delhivery's journey of growth and value-creation," Spoton Logistics Managing Director Abhik Mitra said.
The focus will continue to be on improving clients businesses through investments in people, technology, network and infrastructure, he added.
"Our teams and our business partners will have an opportunity to be part of a much larger organisation with significant opportunities for growth," he said.
Samara Capital and Xponentia that together had acquired Spoton from IEP in 2018, are making a full exit for cash as part of the transaction.
Spoton Logistics started its journey in 2012 when private equity firm India Equity Partners bought the domestic business from TNT India. In 2018, Spoton partnered with a consortium of investors led by Samara Capital and Xponentia Fund Partners to build the next stage of its growth."This is a coming together of two high quality companies with shared values. Our combined scale and focus on technology and data will enable us to develop new solutions for our customers and allow us to enter new verticals in freight," Sandeep Barasia, Chief Business Officer of Delhivery, said.
Kotak Mahindra Capital Company acted as the financial advisor and Shardul Amarchand Mangaldas & Co. acted as the legal advisor to Delhivery on this transaction.
Delhivery, which has a nationwide network covering over 19,400 pin codes, provides a full suite of logistics services such as express parcel transportation, reverse logistics, cross-border, B2B and B2C warehousing, and other services.
It has fulfilled over one billion shipments since inception and works with over 17,000 customers, including large and small e-commerce companies, SMEs and others.