Logistics unicorn Delhivery files for Rs 7,400 Cr IPO

According to papers with the Securities and Exchange Board of India (SEBI), logistics unicorn Delhivery has filed for an initial public offering (IPO) to generate up to Rs 7,400 crore.

Delhivery is the latest Indian startup to go public, capitalising on investor interest in technology-driven firms.

Founded in 2011, Delhivery has established itself as the country’s premier new-age, tech-driven logistics firm. As of June 30, 2021, it operated 20 completely and semi-automated sortation centres and 86 gateways across the country.

According to a RedSeer analysis, as of FY2021, Delhivery was India’s largest and fastest-growing fully-integrated logistics services company by revenue. It operates in 2,300 cities and covers more than 17,500 zip codes.

In the three months ended June 30, 2021, Delhivery had a diverse base of 21,342 active customers, including ecommerce marketplaces, direct-to-consumer e-tailers and enterprises, and SMEs from a variety of industries, including FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive, and manufacturing.

According to a RedSeer analysis, the Indian logistics market has a big potential opportunity, with direct logistics spending of $216 billion in FY2020 and predicted to increase to $365 billion by FY2026 at a CAGR of 9.1%.

Strong underlying economic growth, a favourable regulatory environment, the expansion of local manufacturing, the rapid rise of the digital economy, and improvements in India’s transportation infrastructure will all contribute to this progress. The highly organised express parcel delivery segment of the logistics industry is predicted to increase at a CAGR of around 28-32 percent in value to $10-12 billion by FY2026.

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