Financial Insights

Delhivery IPO gets SEBI approval

The Securities Exchange Board of India (SEBI) has approved the Initial Public Offering of Gurugram-based new-age logistics startup Delhivery. This will be the first unicorn to receive the market regulator’s nod to list on domestic bourses this year. This IPO is one of the most anticipated IPOs this year.

Softbank and Carlyle backed stated in its draft filing that it intends to raise Rs 5,000 crores by issuing primary shares and Rs 2,640 crores shall be an Offer-for-Sale (OFS) for its promoters and existing investors to unload their shares. According to their draft red-herring prospectus, Softbank will offload shares worth Rs 750 crores, Carlyle Group Rs 920 crores and Times Internet around Rs 330 crores. Moreover, the three founders of Delhivery: Kapil Bharati, Mohit Tandon and Suraj Sahara will liquidate shares worth Rs 14 crores, Rs 40 crores and Rs 6 crores respectively.

Delhivery is one of India’s largest independent logistics start-ups founded in 2011. The company provides a full suite of logistics services such as Pracel transportation, reverse logistics, B2B and B2C warehousing, end-to-end supply chain services, etc. with a network exceeding 19000 pincodes and 2500+ cities.

Delhivery has been in the news several times. In mid-2021, it raised $275 million in its Series H round which was led by Fidelity Management and Research Company and saw the participation of several other leading public market funds. The capital it raised ended up giving it a valuation of $3 billion. In the first week of January 2022, it acquired a warehouse automation producer called Falcon Autotech. It acquired Spoton Logistics in an all cash deal of $300 million in early 2021. In December 2021, it acquired Transition Robotics Inc. , a California based drone startup.

In 2020-21, the company reported a revenue of Rs 3,646.5 crores against a revenue of Rs 2,780 crores in 2019-20. Its losses widened from Rs 415.7 crores from Rs 269 crores. For the Quarter ended June 2021, it reported a revenue of Rs 1,317 crores with a loss of over Rs 129 crores.

Highlight by Aman Agarwal.

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