Delhivery Invests in Falcon Autotech Ahead of its IPO

5 August 2022
3 mins read
Delhivery Invests in Falcon Autotech Ahead of its IPO

Delhivery’s Future-Ready Investment Plans

Delhivery plans to join forces with Falcon Autotech to develop and integrate improved automated solutions for warehousing and transport operations.

Falcon Autotech provides intralogistics automation solutions among various other services in the warehousing and logistics space. Delhivery mentioned that its deal with this company is in order to move ahead with its plan to invest in future-ready hardware solutions in its day-to-day operations.

Falcon Autotech claims that it has led various warehouse automated solutions for e-commerce, logistics and warehousing, and courier industries since its inception. Its services include online dimension and weight measurement techniques for freight calculations, assets, and inventory tracking solutions dependent on RFID. The company operates in around 35 nations and employs roughly 400 people.

Regarding this collaboration, Delhivery’s COO mentions that it will help the firm drive at greater speed, efficiency, and precision across business verticals.

According to Delhivery, this investment will help bundle hardware automated solutions with its SaaS platform. This is one of the most crucial growth verticals for the company in India and worldwide.

Delhivery had also made some prior investments in developing its business operations. Some of them are mentioned below:

  • The Indian business of Aramex in 2019
  • Gharpay Technology Services in 2013
  • Transition Robotics Inc in 2021
  • Spoton Logistics in 2021

Delhivery filed its draft papers with the market regular in November. Here are more details about its IPO.

About Delhivery and Its IPO

Delhivery was founded as a hyperlocal logistics service provider in Delhi. It provides end-to-end logistics services and supply chain services in the country. Moreover, the company claims that it has completed over 1 billion shipments since its inception. According to Delhivery’s website, it features around 21,000 customers.

On 2 November 2021, Delhivery filed its DRHP with SEBI to generate around Rs. 7,460 crores. Its IPO will consist of freshly issued shares worth Rs. 5,000 crores and an OFS of Rs. 2,460 crores. Through its public offer, the company seeks a $6 – $6.5 billion valuation.

The company’s existing investors and founder will reportedly divest shares for this IPO. According to the DRHP, Japan’s SoftBank Vision Fund, Times Internet, and private equity fund Carlyle will be divesting partial stake.

The company plans to utilize the proceeds from this public offer for the following purposes:

  • Rs. 2,500 crores for organic growth initiatives
  • Rs. 1,250 crores for financing inorganic growth

It has also fixed the retail quota at 10%.

Bottom Line

Concerning this collaboration, Falcon Autotech said that it is elated to welcome Delhivery as its partner. Falcon’s CEO mentions that this collaboration showcases both the company’s dedication towards their customers with newer design and technology in the logistics space.

Source – Economic Times

Frequently Asked Questions

  1. At what price did Delhivery acquire Spoton Logistics Pvt. Ltd.?

Delhivery acquired Spoton Logistics Pvt. Ltd. at $235 million.

  1. Who are the lead managers of Delhivery’s IPO?

The lead managers to this IPO are Kotak Mahindra Capital Company Ltd., BofA Securities India Ltd., Morgan Stanley India Company Pvt. Ltd. and Citigroup Global Markets India Pvt. Ltd.

  1. When was Delhivery founded?

Delhivery was founded in 2011.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.