ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Markets

SoftBank spearheads $413m investment in Indian logistics unicorn

Delhivery plans service expansion in growing e-commerce sector

Warehouses serving e-commerce businesses are springing up across India.   © Reuters

MUMBAI -- Indian logistics startup Delhivery has raised $413 million from a group of investors led by SoftBank Group's Vision Fund as it moves to expand its e-commerce services.

Existing investors Carlyle Group of the U.S. and Fosun International of China also took part in the latest funding round, which valued the company at more than $1.5 billion -- making it a so-called unicorn, or a privately held company valued at more than $1 billion. A breakdown of the investments has not been disclosed.

Founded in 2011, Delhivery serves more than 1,800 cities across India and over 10,000 customers, including 500 big companies. The company has expanded by opening a slew of logistics centers in a country with an underdeveloped distribution network. E-commerce orders have been flooding into its automated delivery centers.

"We will be scaling up our newer warehousing and freight services through large investments in infrastructure and technology and global partnerships," said CEO and co-founder Sahil Barua. The company plans to expand its delivery area by more than 30%.

SoftBank's Vision Fund has previously focused on information technology companies, but the latest investment marks a broadening of scope. The fund recently opened an office in Mumbai as part of plans to ramp up investment in Indian startups. The fund's other Indian investments include budget hotel operator Oyo Hotels and the Paytm electronic payment service, which is backed by China's Alibaba Group Holding. The fund also invested in e-commerce company Flipkart but sold its stake to U.S. retailer Walmart.

The Indian online shopping market has nearly tripled from 2015 to around $34.2 billion in 2018, according to U.K.-based Euromonitor International. It is expected to reach more than $85 billion in 2023.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 19th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media