 "IPO-bound Delhivery invests in logistics automation firm Falcon Autotech")
IPO-bound logistics company Delhivery has invested an undisclosed amount in Falcon Autotech, a logistics automation solutions provider.
“This announcement is in line with Delhivery's stated objective of sustained investments in future-ready hardware solutions in its operations. Delhivery (including Spoton) already operates 20 automated sortation centres, 124 gateways, and 83 fulfillment centres across India as of June 30, 2021,” the company said.
With this partnership, Delhivery expects to work closely with Falcon Autotech to design and implement new automation solutions for transportation and warehousing operations. The partnership will also enable the bundling of the hardware automated solutions along with Delhivery’s SaaS platform, one of the proposed growth verticals for Delhivery in the national and international market.
Ajith Pai, COO of Delhivery, said, “The collaboration with Falcon Autotech strengthens our ability to drive greater speed, precision, and efficiency across our business lines."
Naman Jain, Chief Executive Officer, Falcon Autotech, added, "This investment is a testimony to Falcon’s commitment to our customers, our design, technology, and delivery capabilities, and the product roadmap ahead.”
In November, Delhivery filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), for an issue size of Rs 7,460 crore.
The primary issue will be of Rs 5,000 crore, which the company will raise via public issue. The offer for sale by the existing investors will be Rs 2,460 crore.
Key shareholders selling in the IPO are China Momentum Fund (Deli CMF) worth Rs 400 crore, Carlyle, worth Rs 920 crore, SoftBank worth Rs 750 crore and Times Internet worth Rs 330 crore.
According to the DRHP, Delhivery plans to utilise net proceeds of the IPO towards funding organic and inorganic growth through acquisitions and other strategic initiatives.
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