Logistics unicorn Delhivery files for Rs 7,400 Cr IPO
Logistics unicornhas filed for an initial public offering (IPO) to raise up to Rs 7,400 crore, filings with the Securities and Exchange Board of India (SEBI) reveal.
Delhivery joins the list of Indian startups taking the public route and tapping into the investor enthusiasm for technology-led businesses.
The IPO of Delhivery will consist of a fresh issue of shares worth Rs 5,000 crore and an offer for sale of Rs 2,460 crore from some of the existing investors.
Founded in 2011, Delhivery has emerged as the leading new-age, tech-driven logistics startup in the country. It operates 20 fully and semi-automated sortation centres and 86 gateways across the country as of June 30, 2021.
Delhivery has been backed by SoftBank, Tiger Global, Times Internet, Carlyle Group, Steadview Capital, and Addition. It has cumulatively raised around $1.37 billion in funding.
According to a RedSeer report, Delhivery was the largest and fastest-growing, fully-integrated logistics services player in India by revenue as of FY2021. It has a presence in 2,300 cities, accounting for more than 17,500 pin codes.
Delhivery has a diverse base of 21,342 active customers such as ecommerce marketplaces, direct-to-consumer e-tailers and enterprises, and SMEs across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing, in the three months ended June 30, 2021.
A report by RedSeer noted that the Indian logistics market presents a large addressable opportunity, with direct spends of $216 billion on logistics in FY2020, and is expected to grow to approximately $365 billion by FY2026 at a CAGR of 9.1 percent.
This growth will be driven by strong underlying economic growth, a favourable regulatory environment, growth of domestic manufacturing, rapid growth of the digital economy, and improvements in India’s transportation infrastructure. Within the logistics industry, the highly organised express parcel delivery segment is expected to grow at a CAGR of approximately 28-32 percent by value to $10-12 billion by FY2026.
Delhivery reported revenue from contracts with customers at Rs 3,646.5 crore in FY21 compared to Rs 2,780.5 crore a year ago. In FY21, its net loss was at Rs 415.7 crore against almost Rs 269 crore in FY20.
Kotak Mahindra Capital, Morgan Stanley India, BOFA Securities and Citigroup are the book-running lead managers for the IPO.