Canada Pension Plan Investment Board (CPPIB) has broadened its exposure to India’s lucrative logistics sector with a US$115 million investment in New Delhi-based logistics provider Delhivery.
Delhivery is one of India's leading third-party logistics providers and offers a range of supply chain services in more than 2,000 cities. CPPIB’s investment was made through its Fundamental Equities Asia (FEA) Group, which performs fundamental research and invests in corporates for the long term throughout Asia. Following the investment, CPPIB will have one seat on Delhivery's board.
Deborah Orida, senior managing director and global head of active equities at CPPIB, said that the continued growth of e-commerce in India has generated significant opportunities in the country’s express logistics space for long-term investors such as CPPIB.
“We are pleased to partner with a market leader,” she said. “This investment in Delhivery builds on our Fundamental Equities Asia group's strategy to provide strategic capital to high-quality companies in the region.”
Sahil Barua, founder and chief executive officer of Delhivery, said that CPPIB’s investment marked the start of a new phase of growth for the logistics provider.
"We are delighted to welcome CPPIB as a new partner for our next phase of growth alongside our existing partners,” he said. “The last year has been particularly exciting for us at Delhivery. We have crossed 17,500 pincodes across India, launched three new businesses, created over 10,000 new jobs and delivered handsome financial returns and liquidity for our early risk investors while bringing in an incredible new set of patient partners who will continue to back us on our long-term ambition of becoming the operating system for commerce in India. CPPIB's investment coincides with a major milestone for the company as we cross over 500 million in cumulative shipments to date."