IPO-bound Indian startup Delhivery acquires local logistics peer

Delhivery, an Indian logistics startup, has acquired Spoton Logistics, a local competitor driven by engineering and tech. The deal will help the Softbank-backed Delhivery, which is already a top business-to-consumer (B2C) logistics player, to strengthen its business-to-business (B2B) services.

Photo credit: Delhivery

Spoton investors Samara Capital and Xponentia, meanwhile, are making full exits under the deal.

“We are well placed to provide benefits of synergies between our B2C and B2B express businesses to the customers of both Delhivery and Spoton, and further enhance our end-to-end supply chain capabilities,” said Delhivery’s CEO, Sahil Barua.

Delhivery currently offers a full suite of logistics services, fulfilling over 1 billion shipments since its 2011 launch. On the other hand, Spoton, which was founded in 2012, is a  multimodal express logistics and supply chain solutions company that focuses on servicing different industries from lifestyle to technology.

Delhivery shares Spoton’s emphasis on customer relationships and service quality, professional management, and technology and engineering, said Abhik Mitra, Spoton’s managing director.

In July, Delhivery entered a commercial agreement with FedEx Express, from which it received US$100 million in funding.

The Bengaluru-based firm also raised US$277 million in a Fidelity-led round in May and is reportedly set to raise US$500 million via a public listing in March 2022.