Porter looks to raise $100 million from private equity firms

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Subscribe to enjoy similar stories. Private equity companies are looking to invest $100 million in new-age intra-city logistics services provider Porter, in a deal that will value the decade-old startup at $1.1-$1.2 billion, two people with knowledge of the development said. The new funding round will be a mix of primary and secondary share sale, they said on the condition of anonymity.

The Benagaluru-based company has got terms sheets from investors including Kedaara Capital, Multiples and Peak XV, the first person cited earlier said, adding that Porter has been able to bring down its burn rate while growing its revenues, and is therefore demanding a premium to its last round valuations. “The ask was as high as $1.3 billion - $1.4 billion," the second person said. However, the secondary portion where some of the early investors in the company are looking to sell stake will be valued at a discount, with the blended value being over a billion dollars, these people said.

Earlier this year, Porter entered the unicorn club after completing an internal round, where individuals bought shares from the employee stock ownership plan (ESOP) pool at a valuation of $1 billion, Mint reported last month. Generally, as a rule of thumb, a revision in valuation is set by an incoming investor and not by existing ones. The company has raised a total capital of $150 million from investors like Tiger Global, Peak XV Partners, the Mahindra Group and Lightrock, among others.