Bengaluru-based logistics ‘Porter’ achieves unicorn status
Porter, a logistics services company supported by Tiger Global, recently completed a friends and family round that propelled the company into unicorn status. In this round, shares from the company’s employee stock ownership plan (ESOP) pool were bought by private investors, resulting in a $1 billion valuation.
According to Moneycontrol, in this most recent fundraising attempt, shares valued at Rs 25 crore were purchased by 15–20 individuals, . With this momentous achievement, Porter becomes the third unicorn in India this year, following in the footsteps of B2B SaaS provider Perfios and AI firm Krutrim.
What is Unicorn Status?
Unicorns are privately held businesses with a market capitalization of $1 billion or more. There are roughly 106 unicorns in India. Porter’s rise to unicorn status is impressive, especially in light of the considerable increase in its price. Since its most recent fundraising round in 2021, when it was valued at $500 million, the company’s valuation has doubled.
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Since its founding in 2014, Porter has secured around $150 million from well-known investors, including the Mahindra Group, Tiger Global, Peak XV Partners, Kae Capital, and Lightrock.
What distinguishes this secondary round is that it occurred at a premium rather than a discount, which is unusual in such deals. Secondary transactions often involve the sale of shares at a 25-30% discount to the previous primary pricing. Porter’s leadership, on the other hand, settled on a $1 billion valuation, indicating their great belief in the company’s growth potential. This decision was backed up by a significant increase in revenue, which more than doubled to Rs 1,754 crore in FY23 from Rs 848 crore in FY22.
Porter has previously successfully organized a friends and family round. Previously, in the first quarter of 2023, the company sold shares from its ESOP pool at Rs 7-8 crore for a valuation of $700 million. The company’s constant ability to demand premium valuations during ESOP liquidation events demonstrates its tremendous growth and market confidence. According to sources, Porter’s annual recurring revenue (ARR) has climbed three to four times since the last ESOP liquidation, justifying the subsequent valuation hikes.
