Carlyle, Tiger Global invest over $100m in Delhivery

Capital from the investors will be used for operational improvements and further acquisitions.

The Carlyle Group and New York-based investment firm Tiger Global Management have invested over $100 million in Gurgaon, India-based e-commerce delivery company Delhivery, according to a company statement.

The firm’s individual commitments were not disclosed; Tiger Global previously backed the company’s $85 million Series D funding round in 2015.

Carlyle invested from Carlyle Asia Partners IV, its $3.9 billion 2013-vintage Asia buyout fund. The firm has made 11 investments so far from the fund, the most recent of which are medical device manufacturer MicroPort Scientific Corporation and Chinese hospital group Zhongmei Healthcare.

Carlyle’s investment will be used to ramp up operational improvements in the company and to support its business expansion plans.

“We see significant potential for technology-enabled logistics in the country with the growth of e-commerce as well as increasing customer focus on on-time delivery and service levels. Delhivery, with its industry-leading service metrics and cost efficiency, is well-positioned to benefit from these future growth opportunities,” Neeraj Bharadwaj, managing director of the Carlyle Asia buyout team, said in a statement.

Carlyle, with close to $160 billion of assets, has invested more than $1.4 billion in over 30 transactions in India as of end-December 2016.

Founded in 2011, Delhivery is an express logistics company that covers more than 350 cities in India. It also provides end-to-end solutions such as global inventory, distributed order management and customer engagement to enterprises and small businesses.

The company counts Mumbai-based private equity firm Multiples Alternate Asset Management, Silicon and Bangalore-based Nexus Venture Partners and Times Limited, a subsidiary of The Times of India Group, among its investors.

India’s e-commerce industry is expected to balloon to $100 billion by 2020, from $15 billion in 2015, according to a Deloitte report. With a maturing online shopping base brought about by improved data connectivity in both urban and rural parts of India, more Indians are expected to shop online in the next three years.