The Canada Pension Plan Investment Board (CPPIB) will get a seat on Delhivery’s board as part of the deal, which was announced Sept. 9.
The investment from CPPIB marks an important step for Delhivery, a third-party logistics provider that surpassed the $1 billion valuation mark earlier this year. CPPIB is one of the world’s largest sovereign wealth funds, managing more than C$400 billion for Canada’s largest public pension plan.
While Delhivery represents a tiny portion of CPPIB’s portfolio, including nearly C$10 billion in India alone, it exposes the fund to a rapidly growing sector.
“The continued strong growth of e-commerce has generated significant opportunities in India’s express logistics space for long-term investors such as CPPIB, and we are pleased to partner with a market leader,” Deborah Orida, senior managing director and global head of active equities for CPPIB, said in a statement.
Delhivery provides logistics services across India, including parcel, truckload and less than truckload. The company said it completed its 500 millionth shipment recently.
Indian regulators approved the deal in August.