Indian logistics startup

Indian logistics startup Delhivery files for $1 billion IPO

Follow Us:

Key Highlights:

  • Delhivery, an Indian logistics firm, said in a filing with the local regulator that it plans to raise $998 million in its first public offering.
  • According to data analytics platform Tracxn, the Gurgaon-based corporation has garnered $1.37 billion in investment over the years.
  • Late last year, the business announced plans to invest more than $40 million in the next two years to expand and increase the size of its fleet

Delhivery files for $1 billion IPO

Delhivery, an Indian logistics firm, said in a filing with the local regulator that it plans to raise $998 million in its first public offering, following a number of other digital businesses in the world’s second-largest internet market in exploring the public markets.

According to a filing, the 10-year-old business intends to issue new shares worth $669 million, while the remainder of the cash would be used to purchase existing shares (PDF).

The business, which was valued at more than $3 billion four months ago, is looking to go public at a valuation of more than $6 billion.

Delhivery, which is backed by SoftBank, Tiger Global Management, Times Internet, The Carlyle Group, Steadview Capital, and Addition, began as a meal delivery company but has now expanded to provide a full suite of logistical services in over 2,300 Indian cities and more than 17,500 zip codes.

Using digitalization to address inefficiencies

According to data analytics platform Tracxn, the Gurgaon-based corporation has garnered $1.37 billion in investment over the years. In the fiscal year that ended in March of this year, it recorded a loss of $56 million on revenue of $514 million.

It is one of a few firms seeking to automate the logistics market’s demand and supply systems through a freight exchange platform.

Its platform unites consigners, agents, and truckers that provide road transportation services. According to the firm, the platform minimizes the role of brokers, makes certain of its assets more efficient, such as trucking — the most common way of transportation for Delhivery — and assures round-the-clock operations.

This digitalization is critical for addressing the inefficiencies in India’s logistics business, which have long hampered the country’s economy. Poor supply and demand planning and forecasting raise carrying costs, theft, damages, and delays, according to Bernstein analysts in research on India’s logistics business.

Plans to expand the fleet

Delhivery works with “all of India’s top e-commerce firms and prominent corporations,” according to the company, which has delivered over 1 billion orders. It also claims that the company has worked with over 10,000 consumers. Its couriers are allotted an area that never exceeds 2 square kilometers for the last leg of the delivery, allowing them to make numerous delivery runs per day to save time.

Late last year, the business announced plans to invest more than $40 million in the next two years to expand and increase the size of its fleet in order to satisfy the increased demand for orders as more people purchase online during the epidemic.

Also Read: Top 12 Upcoming IPO In 2021 That You Should Follow Right Now!

BusinessApac

BusinessApac

BusinessApac shares the latest news and events in the business world and produces well-researched articles to help the readers stay informed of the latest trends. The magazine also promotes enterprises that serve their clients with futuristic offerings and acute integrity.

Subscribe To Our Newsletter

Get updates and learn from the best

About Us

West has been driving the business world owing to its developed economies. The leading part of the world is straining to sustain its dominance. However, the other parts of the world, especially Asia Pacific region have been displaying escalating growth in terms of business and technological advancements.

Copyright © 2022 - Business APAC. All Right Reserved.

Scroll to Top

Hire Us To Spread Your Content

Fill this form and we will call you.