LetsTransport, the truck aggregator startup, is in talks to raise $15 million from Bertelsmann India Investments (BII) in an internal round, which values the company at around $80 million, people aware of the developments told Moneycontrol.
The capital infusion comes at a time when a deal between TPG NewQuest and Lets Transport did not fructify recently, one of the sources said.
NewQuest was considering a $20 million investment in LetsTransport at a valuation of around $200 million but later revised the terms to offer for the same amount at a valuation of $100 million, a 50 percent reduction, as investors reset multiples for startups across the board amid a tighter macroeconomic setting.
As the new offer did not go down too well with investors or the company, the round was called off.
Getting 'real'
The valuation of $80 million that LetsTransport commanded during the internal round is sharply lower than its last reported valuation of $220 million in 2022.
A down round is when a company raises money at a valuation that is lower than it was in the previous fundraise. LetsTransport's round is yet another example of founders coming to terms with reality.
Udaan, Rupeek, Byju's are some startups that have either raised in a down round or are in the process of doing so.
The latest round will be a mix of primary capital and also include a secondary shares sale.
Fosun, an early backer of LetsTransport, will dilute its stake in LetsTransport and BII will buy more shares in the company, two people aware of the developments told Moneycontrol. The exact split is not known yet as talks are still on.
To be sure, it is common for valuations to be compressed during internal rounds and secondary transactions because existing investors are typically involved.
BII said nothing is definitive yet. “We can confirm that there are currently no executed documents, binding or non-binding, between the company and BII for a round. We are happy to share any developments with regard to funding with LetsTransport as something gets finalised,” a spokesperson said in response to Moneycontrol’s queries.
China-based Fosun and LetsTransport did not reply to Moneycontrol’s email seeking details of the round. TPG NewQuest declined to comment.
Once complete, this will be the second cheque that BII will write for the Bengaluru-based company in less than a a year. In July 2023, BII pumped $25 million into LetsTransport and said it “remains steadfast in its commitment to support portfolio companies’ growth journeys”.
BII first invested in LetsTransport in 2018 and has participated in subsequent equity rounds after that, as per Tracxn, a private markets data provider.
Founded in 2015 by Pushkar Singh, Sudarshan Ravi, and Ankit Parasher, LetsTransport is a plug-and -lay platform that offer its clients multiple assets across use cases in last-mile, mid-mile, and EV space. It competes closely with Peak XV-backed Porter.
The company had raised $50 million prior to the latest developments. Rebright Partners, Mitsui Sumitomo Insurance Venture Capital, Swati Foundation, DS Group and Aamara Capital are some of its investors.
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