Delhivery, a logistics and supply chain start-up, is the latest Indian company to join the ongoing IPO frenzy. The company is gearing up for its massive $1 billion IPO and plans to file its draft paper in October 2021.
As per sources familiar with the developments, Delhivery expects to make its stock market debut in March 2022. The IPO could be a mix of both fresh issue and an offer for sale of the existing shares.
A Close Look into the Matter
Delhivery would be a new addition to the long list of Indian start-ups preparing to enter the IPO market in the upcoming days. However, the details about Delhivery IPO are yet to be finalised.
The company is still deciding on IPO issue size, timetable, and other vital details. Regardless, the company is keen on joining the bandwagon of the likes of Paytm, Flipkart, Byju’s, and several others who have chosen the IPO route to raise funds.
Did you know Delhivery has acquired Spoton ahead of its IPO?
Delhivery has struck a deal with Bengaluru-based Spoton Logistics recently just prior to its IPO. This acquisition will help Delhivery to boost its B2B segment. There are not many details available in the public domain about the said deal at this moment. However, experts say that the acquisition deal was an all-cash transaction worth $300 million.
Company Finances – A Quick Overview
According to Sandeep Barasia, Chief Business Officer and MD of Delhivery, the firm has generated Rs. 3,700 crores in FY2021. He is also confident that the company will clock in 50-55% annual growth in the following years.
He further adds that the company has a cash balance of $550 million. It has already formed a board of sub-committee in January 2021 to look after its IPO and associated M&A activities.
Delhivery managed to reduce its loss margin by an impressive 84% in the FY20. It suffered a net loss of Rs. 284.13 crores in 2020 as compared to Rs. 1,781.04 crores in 2019. Statistically, the company was successful in trimming its loss margin by 6.8 times.
Interestingly, it has decreased its expenses by 6% to Rs. 3,250.4 crores. Contrarily, its revenue jumped by 74% to Rs. 2,986.4 crores in 2020. Company revenue and expenses in FY19 stood at Rs. 1,694.9 crores and Rs. 3,463.31 crores respectively.
About the Company
Delhivery is a supply chain services company founded in 2011 by Kapil Bharati, Sahil Barua, Suraj Saharan, Bhavesh Manglani, and Mohit Tandon. This company provides warehousing, transportation, freight along with order fulfilment services. In addition, it offers reverse logistics, express parcel transportation, cross-border, LTL and FTL freight, B2C and B2B warehousing, and associated technology services.
Delhivery claims to have successfully fulfilled over 850 million transactions since it was founded. It deals with more than 10,000 direct customers. Additionally, Delhivery boasts of having a long list of investors, including Nexus Ventures, SoftBank, CPP Investment Board, and many others.
It raised $413 million in 2019 from SoftBank and other investors, thereby entering the unicorn club. Till now, it has gathered nearly $959.6 million in funding from its major investors.
Delhivery had planned for its IPO in 2019. However, it had to halt its plans due to the 2019 general elections. Apart from the Spoton deal, it has raised an additional $100 million as strategic capital from FedEx Express. Overall, this upcoming IPO appears to be a lucrative opportunity for investors who are willing to speculate in logistics or supply chain services, in general.
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Frequently Asked Questions
- How to apply for Delhivery IPO?
You can apply for Delhivery IPO with the ASBA facility of your savings or current bank accounts.
- When is the opening date of Delhivery IPO?
The tentative timeline of Delhivery IPO is yet to be announced.
- What will be the issue type of Delhivery IPO?
Delhivery is yet to share details about its issue type.