Logistics startup Delhivery posts wider losses in FY19
Gurugram-based logistics startup Delhivery posted a revenue of Rs 1,695 crore for the financial year 2019, compared to Rs 1,073 crore in the previous year. The 57.9 percent bump in its revenue however comes on the back of a widened loss for FY19.
The startup's loss for FY19 widened to Rs 1,772 crore, from the Rs 692-crore loss it posted in FY18. The firm incurred almost double its “other expenses” at Rs 2,995 crore for FY19, compared to Rs 1,421 crore in FY18. That made the total expenses rise to Rs 3,466 crore, almost double that of the Rs 1,765 crore expenses incurred in the previous year.
The startup that mostly focusses on the ecommerce sector has reportedly held early-stage talks with Blue Dart Express Ltd and Gati Ltd to acquire their B2B operations.
The logistics startup made headlines earlier this year when it secured $413 million in a funding round led by SoftBank Vision Fund. Existing investors Carlyle Group and Fosun International also participated in that funding round, which catapulted Delhivery into the coveted unicorn club and pegged its valuation at $1.5 billion+.
And, in September this year, Canada Pension Plan Investment Board (CPPIB) invested close to $115 million in Delhivery. The investment was made through CPPIB’s Fundamental Equities Asia (FEA) Group, which performs fundamental research and invests in quality corporates for the long term across Asia.
The logistics sector is large but fragmented in India. Tech-enabled logistics startups that have been trying to disrupt the sector have emerged as the darling of investors. Transport and logistics startups raised $1.79 billion in the nine-month period ending September 2019, up by 3.1X over the amount recorded in the corresponding period in 2018.
Third-party logistics provider Delhivery currently operates in more than 2,000 cities (across more than 17,500 pincodes), offering a full range of supply chain services. Delhivery today works with over 10,000 direct customers, which includes large and small ecommerce participants, SMEs, and over 350 leading enterprises and brands.
(Edited by Athirupa Geetha Manichandar)