Logistics Startup Porter becomes Unicorn

Porter, a logistics services provider backed by Tiger Global, has attained unicorn status following the completion of a fresh friends and family round.

Individuals purchased shares from the employee stock ownership plan (ESOP) pool at a valuation of $1 billion.

With this achievement, Porter becomes India’s latest unicorn, joining the ranks of over 100 privately held companies valued at or above $1 billion. The company’s valuation has doubled from its previous $500 million mark, reflecting its rapid growth trajectory since its inception in 2014.

During the recent round, approximately 15-20 individuals acquired shares worth Rs 25 crore in Porter, signaling strong investor confidence in the company’s potential.

Porter has raised a total of around $150 million to date from prominent investors like Tiger Global, Peak XV Partners, Kae Capital, the Mahindra Group, and Lightrock.

The significance of Porter’s secondary round lies in the fact that it occurred at a premium, contrary to most secondary transactions which typically transpire at a discount. 

This exceptional valuation jump is supported by the company’s robust financial performance, with revenue surpassing Rs 1,754 crore in FY23, more than doubling from the previous fiscal year.

Porter’s decision to liquidate its ESOP pool at a premium underscores the leadership’s confidence in the company’s growth trajectory.

Since the last ESOP liquidation event, Porter’s annual recurring revenue (ARR) has surged 3-4X, reflecting its sustained momentum and market dominance.

Founded in 2014 by Pranav Goel, Uttam Digga, and Vikas Choudhary, Porter specializes in optimizing last-mile delivery operations for businesses by offering on-demand light commercial vehicles (LCVs).

The company has expanded its offerings, including an intra-city courier service on two-wheelers, to diversify its revenue streams.

The upward trend in ESOP cashouts also bodes well for Porter’s employees, who stand to benefit significantly from the company’s success.

ESOPs have emerged as a potent tool for attracting and retaining top talent, contributing to a shift in employee perception toward wealth creation through equity ownership.

The latest valuation milestone positions Porter as a key player in India’s burgeoning logistics sector, poised for further growth and expansion in the years ahead. 

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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