Canada Pension Firm Invests $115M In SoftBank-Backed Indian Logistics Startup

The Canada Pension Plan Investment Board (CPPIB) invested $115 million in Indian logistics company Delhivery, according to reports .

Delhivery is backed by Softbank and Carlyle, and valued at $1.5 billion. In March, the company got more than $400 million in a financing round led by Softbank, with participation from Fosun.

The investment by the CPPIB was worked through the Fundamental Equities Asia Group, and organization that does research and makes investments all around Asia. The deal was approved by the Competition Commission of India (CCI) last month, and the CPPIB will get an 8 percent stake in Delhivery.

“The continued strong growth of e-commerce has generated significant opportunities in India’s express logistics space for long-term investors such as CPPIB,” said Deborah Orida, senior managing director and global head of active equities in a statement.

CPPIB has invested C$9.9 billion through all asset classes in India. The company has also invested in Kotak Mahindra Bank, Alibaba Group, Ant Financial and Samsung Electronics.

Delhivery was started in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan and Kapil Bharati. It does transportation, freight services, warehousing and fulfillment services for customers in 2,000 cities across the country.

“We are delighted to welcome CPPIB as a new partner for our next phase of growth alongside our existing partners. The last year has been particularly exciting for us at Delhivery,” Delhivery’s Founder and CEO Sahil Barua said. “We have crossed 17,500 pin codes across India, launched 3 new businesses, and created over 10,000 new jobs … CPPIB’s investment coincides with a major milestone for the company as we cross over 500 million in cumulative shipments to date.”

Delhivery recently also acquired the Indian operations of a logistics company based in Dubai, called Aramex. Data shows that startups involved in logistics in a supply chain and digital-focused space attracted $1.89 billion worth of investments since last year, and the momentum is expected to continue.