The Competition Commission of India (CCI) approves the secondary acquisition in Delhivery Private Limited (DPL) by SVF Doorbell (Cayman) Ltd. (SVFD),under Section 31(1) of the Competition Act, 2002, Yesterday.

The proposed transaction entails secondary acquisition of up to 3.28% of the issued and paid up share capital of DPL on a fully diluted basis by SVFD. Subsequent to this acquisition, SVFD will hold up to approximately 25.72% the issued and paid up share capital of DPL.

SVFD is a holding company set up to hold its proposed investment in DPL on behalf of SoftBank Vision Fund L.P., a venture capital fund focused on making long-term financial investments in companies.

DPL is engaged in the market for provision of third party logistics (3PL) services in India. As part of its logistics services, DPL provides transportation,warehousing, freight services and overall fulfillment services to various customers. DPL’s logistics services are provided to enterprises or persons who operate across different business models and are present across the value chain(big brands, small and medium enterprises, e-commerce platforms) etc..

Detailed order of the CCI will follow.

Secondary acquisition approval under competition law allows investor to increase shareholding in a logistics services firm. Approval under Section 31(1) of the Competition Act, 2002 permits a holding company investor to increase its aggregate shareholding in Delhivery Private Limited through a secondary acquisition, resulting in a higher post-transaction ownership stake. The investor holds the shares on behalf of a venture fund, and the target operates in the third-party logistics market providing transportation, warehousing, freight and fulfilment services to a range of enterprise customers. A detailed order will follow.