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Startup Street: Softbank likely to increase stake in Delhivery by 3.26%, says Vivek Durai of paper.vc

Updated : November 14, 2019 03:26 PM IST

SoftBank Vision Fund is looking at increasing its stake in Delhivery by picking up to 3.26 percent stake in the logistics company, according to business intelligence platform paper.vc.

Vivek Durai, founder of paper.vc, said, "I do not think it changes the valuation of the company. They hit a post-money valuation of $1.5 billion in the round that they closed in December 2018. What is interesting about this secondary is that someone on the cap table wanted an exit and clearly Softbank stepped in to increase their stake. Softbank was looking to increase its stake and was willing to increase its stake but at least one institutional shareholder bet on an early exit rather than waiting for an IPO."

He further added, "This is a 3.26 percent purchase. So, in that sense, it is a minor increase. Softbank hits 25.7 percent odd from its 22.44 percent stake earlier this year. So, not a large stake increase but it is a $50 million exit for whoever sold their shares, that is our estimate."
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