Delhivery acquires SpotOn Logistics

CHENNAI:

Samara Capital

and

Xponentia Capital

have exited their ownership in

SpotOn Logistics

with 100% sale to logistics company

Delhivery

.

Samara and Xponentia had held the investment for a period of three years and the "investment performance exceeds typical IRR and Money Multiple expectations," the two investors said in a joint statement.

In the last three years, SpotOn acquired RTS (a supply chain solutions business) and set up two new verticals focused on “Air Express” and “non-corporate customers”. As a consequence, net sales and EBITDA of SpotOn grew at a CAGR of 24% and 30% respectively, said the statement.

While SpotOn’s business was severely impacted along with the economy during the lockdowns of H1FY21, "the business rebounded sharply and the company gained market share in H2FY21 on the back of smart execution by management & financial backing provided by Samara and Xponentia," added the statement.

Under the ownership of Xponentia Capital and Samara Capital SpotOn grew its active customer base by more than 1.5x and created three new verticals -- non-corporate customer vertical,

Air Express

Vertical that allows customers choice of faster delivery & Supply chain solutions vertical through the RTS acquisition that completes its product offering. SpotOn delivered industry leading returns on capital (ROCE) of more than 30%.

Gautam Gode and Abhishek Kabra were the nominee directors representing Samara Capital on the board of SpotOn. Gautam Gode, MD, Samara Capital said “SpotOn is a unique player in an otherwise legacy industry – controlled by PE funds from Day 1 and with a totally professional and best-in-class management. Delhivery has a similar provenance; that’s why we’re happy that SpotOn finds its next home in this new-age player.”

PR Srinivasan and Devinjit Singh were the nominee directors representing Xponentia Capital on the board of SpotOn. PR Srinivasan (PRS), managing partner at Xponentia, Capital said, “After being spun off in early 2012 with revenues of less than Rs 12 crore a month, the company has been able to grow close to Rs 1000 crore a year, due to the emphasis on technology."

Abhik Mitra, managing director of SpotOn Logistics added, “The investment performance shows the power of collaboration between well aligned investors; the Samara and Xponentia teams have long history of shared accomplishments dating back to their days as Citigroup colleagues."

Strategy Law Partners acted as the legal advisor to Samara Capital, Xponentia Capital and SpotOn Logistics on this transaction.