SoftBank-backed Indian logistics startup Delhivery invests in software firm Vinculum
Delhivery, a logistics services provider operating in India, is investing in Vinculum, a software company that focuses on omnichannel retailing for direct-to-consumer (D2C) enterprises, brands, brand distributors, and quick commerce companies. According to the announcement, the investment marks the first phase of a potential two-stage agreement, with provisions for Delhivery to expand its shareholding within the next six months.
Delhivery, however, did not disclose financial details of the investment but said the transaction is a strategic move to bolster its fulfillment capabilities. The investment is also set to create a comprehensive integrated stack, designed to cater to the complete array of post-purchase needs of a D2C brand, according to the announcement.
Vinculum, one of the early software companies from India, works with over 400 brands across various sectors, including FMCG, healthcare, beauty, cosmetics, fashion, and jewellery in India, Southeast Asia, and the Middle East markets.
The company has been a forerunner in assisting brands in harnessing the potential of e-commerce and omnichannel retailing since its inception. Venkat Nott, founder and CEO of Vinculum Group said the investment “lays the foundation for deep tech integration between both companies, tremendous collaboration opportunities, and immense business value for our customers”.
Founded in 2011, Delhivery claims that it works with over 27,000 direct customers, including large and small e-commerce participants, SMEs, and enterprises and brands. “A strategic partnership with Vinculum strengthens Delhivery’s fulfilment solution to brands,” said Rajaganesh S, head of Supply Chain Solutions at Delhivery.
The proposed investment is dependent on the fulfilment of closing conditions and the details of the deal are expected in the next few days. Delhivery became a unicorn in 2019 when it raised $413 million in a Series F round led by SoftBank Vision Fund, along with existing investors Carlyle Group and Fosun International. It was then valued at $1.5 billion.
In December 2021, the company acquired Transition Robotics, a California-based platform for unmanned aerial system platforms, for an undisclosed amount. The move was aimed at strengthening Delhivery’s capabilities across a wide range of applications, including aerial photography, remote sensing, inspection, and surveys.
The investment comes about two months after SoftBank offloaded a 3.8% stake in the logistics startup for about $115.67 million. The buyers of the shares include the Saudi Arabian Monetary Authority, City of New York Group Trust, Societe Generale, BNP Paribas Arbitrage, Morgan Stanley Mauritius, and Baillie Gifford Emerging Markets Equities Fund. Tiger Global Management also sold a 1.7% stake in Delhivery in February through the open market.
