Mumbai
: Private equity firm Wellington Management may be spending $100 million in the new era logistics service provider Porter along with other existing investors. Mint.
“The round is expected to value the startup between $120 and $14 million and will be a mix of major and minor stock sales,” said one of the three quoted above.
Response Mint A porter spokesman asked: “We do not respond to market speculation based on company policy.” Wellington management did not immediately respond to a request for comment.
To be sure, Wellington has made several bets on the Indian logistics sector, including investments from online freight platform Blackbuck and food delivery company Swiggy, both of which were released last year. Some of its other investments in startups include Go Digit, Urban Company and Policy Bazaar.
UK-based PE giant Apax Partners also wants to invest in the company. DealStreetasia last month.
November, Mint The report said Porter received a term sheet from investors such as Jedala Capital, multiples and existing investors XV. However, it is unclear whether some of the conversations with new investors have been achieved due to Porter’s overvaluation greetings.
“The company proved a premium from the last round because it was able to significantly reduce its burn while growing revenue.”
The development comes after the company completed its internal round and entered the Unicorn Club, the individual bought shares from the Employee Stock Ownership Program (ESOP) pool last year at a $1 billion valuation.
To date, Porter has raised $150 million in total capital from investors such as Tiger Global, XV Partners, Mahindra Group and Lightrock. Finally, it was worth $500 million in 2021, when investors led by Tiger Global and Vitruvia partners raised the external round.
Expansion Plan
Founded in 2014 by Uttam Digga, Pranav Goel and Vikas Choudhary, Porter provides a logistics platform that helps businesses with last-mile delivery operations. The company hopes to double its domestic geographical presence over the next 3-4 years, even if it tries to expand its international presence outside of Dubai, which is the market to enter in 2023.
Digga tells Digga tells Mint In an interview last year. The company’s revenue increased by 56% ₹27 million in fiscal year 2.7 billion, its losses shrank by 45% ₹960 million.
According to Digga, about 10-15% of Porter’s revenue comes from new programs, newer geographies, and 85% of mature businesses and geographies. The expansion to new cities increases the revenue share of the loan tier 2 market by 10%.
Meanwhile, according to the latest Grant Thornton Bharat report, India’s logistics sector grew by 10-12% annually, contributing 14.4% to India’s GDP and employing more than 20 million people.
India’s in-city logistics market is expected to grow at a compound annual growth rate (CAGR) of over 5% in the next few years. Some of the major companies in the logistics market in the city of India include FM Logistics, Porters, Transportation, Cityxfer and Shadowfax.
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