Porter Bags $1 Billion Valuation in New Funding Round

Bangalore-based logistics services provider Porter is set to receive a massive investment of $100 million from private equity companies, valuing the decade-old startup at a whopping $1.1-$1.2 billion, according to sources.

The new funding round, which will involve both primary and secondary share sales, has been initiated by prominent investors including Kedaara Capital, Multiples, and Peak XV. The company's term sheet is seen as an endorsement of Porter's strong financial performance, with the firm having successfully reduced its burn rate while growing its revenues.

According to insiders, Porter's valuation demand was as high as $1.3 billion-$1.4 billion, however the secondary portion where early investors are looking to sell their stakes will be valued at a discount. The blended value of the deal would still put Porter's valuation over a billion dollars.

In recent months, Porter has gained recognition as a unicorn after completing an internal round where private equity firms purchased shares from its Employee Stock Ownership Plan (ESOP) pool. This significant milestone demonstrates the firm's growth and market potential in the logistics sector.

Founded by Uttam Digga, Pranav Goel, and Vikas Choudhary in 2014, Porter has already raised a total capital of $150 million from investors such as Tiger Global, Peak XV Partners, the Mahindra Group, and Lightrock. The company's valuation stood at $500 million last year when it secured an external funding round led by Tiger Global.

Looking ahead, Porter is eyeing to double its geographical presence in India in the next 3-4 years while expanding internationally beyond Dubai. As per a Grant Thornton Bharat report, the logistics sector in India is witnessing growth at an annual rate of 10-12%, employing more than 20 million people and accounting for 14.4% of India's GDP.

With its revenue growing by 56% to over ₹2,700 crore in FY24, Porter is poised to benefit from the expanding intra-city logistics market in India, which is expected to grow at a compound annual growth rate (CAGR) of more than 5% in the coming years.