Delhivery to make a strategic investment in Vinculum

Gurugram-based logistics firm Delhivery will make a strategic investment in Vinculum, a global software company enabling omnichannel retailing for D2C (direct-to-consumer) enterprises, brands, brand distributors, and quick commerce companies.

"A strategic partnership with Vinculum strengthens Delhivery’s fulfillment solution to brands,” said Rajaganesh S, Head of Supply Chain Solutions at Delhivery in a statement.

With D2C enterprises as a focus market for the logistics firm, this investment will its position as a leading fulfillment solutions provider in the segment.

This investment will enable the two companies to create a comprehensive integrated system to meet all the post-purchase requirements of a D2C brand. It will include a unique fully-integrated end-to-end solution by closely integrating with Vinculum's Order Management System (OMS), which is a leading system in the industry.

It comes as the first part of a potential 2-stage deal which will provide Delhivery with the option to further increase its shareholding in the company after six months. However, the investment is subject to the satisfactory completion of closing conditions.

“This investment lays the foundation for deep tech integration between both companies, tremendous collaboration opportunities, and immense business value for our customers,” Venkat Nott, Founder, and Chief Executive Officer of Vinculum Group, said. 

Vinculum, an early software company based in India, helps brands capitalise on the ecommerce and omnichannel opportunities. It has emerged as a prominent SaaS Omni Channel software company. Its operations now span across India, South East Asia, and the Middle East markets, collaborating with over 400 brands in diverse sectors such as grocery and FMCG, healthcare, beauty, cosmetics, fashion, and jewellery.

Delhivery reported on Friday, that its consolidated net loss widened to Rs 159 crore in Q4 FY23. Net loss was at Rs 120 crore in the same period last year. The startup's revenue was at Rs 1,860 crore for the March quarter compared to Rs 2,072 YoY, a decline of about 10%. However, for the first time since listing, the company's adjusted EBITDA turned positive to Rs 6 crore in Q4 FY23, compared to Rs 67 crore loss in Q3 FY23.