Home / Companies / Multiples sells 10% stake in Delhivery to Tiger Global

Mumbai: Multiples Alternate Asset Management Pvt. Ltd, the private equity (PE) fund founded by Renuka Ramnath, has sold about a 10% stake in e-commerce logistics firm SSN Logistics Pvt. Ltd, which operates the Delhivery courier service, to Tiger Global Management Llc, said a senior executive of the fund.

“We have done a partial exit by selling our stake to Tiger Global and have clocked returns of six times from our entry valuation," said Prakash Nene, managing director at Multiples. He declined to say how much the deal was worth.

In May, Multiples had invested 45 crore in the company as part of a broader funding round, according to documents from the Registrar of Companies (RoC). This investment, along with some of the investment made in previous rounds, has been now been sold to Tiger Global Management.

Delhivery raised a total of 506 crore ($85 million) in May, in a funding round led by Tiger Global and existing investors Multiples, Nexus Venture Partners and Times Internet Ltd.

According to RoC documents filed after the last round of funding in May, the firm was valued at nearly $350 million (around 2,275 crore today). The current transaction has been concluded at a premium to the previous valuation. Mint could not ascertain the valuation at which the current transaction has been concluded.

In an email response, Delhivery declined to comment on the story and whether there has been a fresh round of capital-raising.

Tiger Global said the firm has no comment at this point in time and as a practice does not comment publicly on its investment positions.

“Some of the investors who had invested in 2013 and 2014 are seeking to exit either partially or in full from their investments. But it is quite debatable in the present market scenario whether all investee funds will be able to find exits," said Nitin Bhatia, managing director at Signal Hill Capital Advisory India Pvt. Ltd, a technology-focused investment bank.

Bhatia added that the price point at which funds are ready to sell their investments is becoming an important factor because a lot of new investors are not seeking to do secondaries, but are rather keen on coming aboard as new investors providing growth capital.

Delhivery has been raising funds to expand its network to the West Asian, African and South Asian markets. The company is also expanding into e-commerce-enabling services such as cataloguing and warehouse management and is looking at acquisitions across the e-commerce value chain to complete its suite of services.

“There are very few funds who have demonstrated exits in the consumer Internet and enablers space. While we have made a partial exit. We continue to remain excited and happy with the macro picture and growth of the company in particular," Nene added.

Multiples has been exiting some of its investments from its maiden fund to return capital to its limited partners (LPs), apart from raising its second fund. In PE parlance, LPs are investors in a fund. Multiples had raised $405 million from investors in 2010 and has been investing from that fund. Last year, Multiples partially exited from cinema exhibition company PVR Ltd and South Indian Bank Ltd.

UK’s CDC Group, the Canada Pension Plan Investment Board (CPPIB), Dutch pension fund PGGM, and pension and sovereign funds from Europe and West Asia invested in the first fund raised by Multiples. Domestic institutional investors including Life Insurance Corp. of India contributed about 25% to the fund. The fund is almost fully deployed now.

Multiples has been on the road to raise its second fund of $600 million from offshore and domestic investors and has raised over $400 million for the same. It has already made two investments from its second fund in the last three months.

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