The Competition Commission of India (CCI) has granted approval for the Ontario Teachers’ Pension Plan Board to acquire a minority stake in the promising ecommerce logistics startup, Xpressbees.
Under consideration is an investment of $100 million by the Canadian pension investor in Xpressbees, which could result in a valuation of approximately $1.4 billion. The funds from this potential investment may be earmarked for various purposes, including strategic acquisitions.
At this stage, discussions are still in progress, and the specifics of the funding arrangement may undergo changes as negotiations proceed. Both Xpressbees and Ontario Teachers refrained from commenting when approached for confirmation.
Xpressbees, established in Pune, India, in 2015, is known for its comprehensive suite of logistics services, catering to business-to-business, business-to-consumer, cross-border, and third-party logistics needs. With a robust presence comprising over 3,000 offices and service centers throughout the nation, Xpressbees handles an impressive volume of over three million shipments daily.
Of note, Malaysian sovereign wealth fund Khazanah Nasional Bhd. previously invested $40 million in Xpressbees in April, as disclosed by Avendus Capital, serving as the financial adviser to the transaction. Additional prominent backers of this thriving startup include Blackstone Inc., TPG Inc., and Alibaba Group Holding Ltd., as indicated in the press release.
Ontario Teachers has expressed a deep commitment to the Indian market, with cumulative investments in excess of $3 billion in the country. This further underscores India as one of the key strategic countries for Ontario Teachers, as the fund aspires to achieve a remarkable $300 billion in investments in the nation by 2030, a commitment evident on its official website. Notably, one of its significant investments includes a stake of approximately 18.6 billion rupees ($225 million) in the National Highways Infra Trust, a vehicle sponsored by the National High Highways Authority of India.
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It is worth emphasizing that the ongoing discussions may result in developments, and further updates will be provided as these negotiations progress.
