Indian Logistics Giant Delhivery raised $277M led by Fidelity

Before the company files for an IPO later this year, Delhivery has secured $277 million in what is anticipated to be the last investment round.

The business, with its headquarters in Gurgaon, announced in a regulatory filing that it had secured $277 million in a rounded value by Boston-based investment firm Fidelity. According to TechCrunch, the latest round also included the UK’s Baillie Gifford and the sovereign wealth funds GIC and Chimera from Abu Dhabi.

The new round valued the 10-year-old startup at about $3 billion. Delhivery — which also counts SoftBank Vision Fund, Tiger Global Management, Times Internet, The Carlyle Group, and Steadview Capital among its investors — has raised about $1.23 billion.

Delhivery began as a food delivery firm but has shifted to a full suite of logistics services in over 2,300 Indian cities and more than 17,500 zip codes.

It is among a handful of startups attempting to digitize the demand and supply system of the logistics market through a freight exchange platform. Its platform connects consigners, agents, and truckers, offering road transport solutions.

According to the firm, the platform lessens the need for brokers, increases the efficiency of certain of its assets, such as trucks, Delhivery’s most popular means of transportation, and guarantees round-the-clock operations.

The business said late last year that it would invest more than $40 million over the course of two years to expand and increase the size of its fleet in order to handle the rising demand for orders as more people turn to online shopping in the wake of the epidemic.

Digitalization is essential to address the shortcomings in the Indian logistics business that have long hampered the national economy. According to specialists at Bernstein, inadequate planning and forecasting of demand and supply raise costs, theft, damage, and holdups, according to research, they published last month on the Indian logistics business.

According to its website, Delhivery, which claims to have fulfilled over 1 billion orders, works with “all of India’s top e-commerce businesses and leading businesses” and claims to have served over 10,000 customers. Its carriers are given a location for the final leg of the package that never exceeds 2 sq km, allowing them to make many delivery passes during the day to save time.

According to Bernstein analysts, the TAM (total addressable market) for the Indian logistics business is above $200 billion. The start-up announced toward the end of 2015 that it planned to invest more than $40 million within two years to expand and increase the size of its fleet in order to meet the growing demand for orders as more people store online amid the pandemic. After ten years after its founding, the firm has decided to issue an IPO due to its bright future and zealous workforce. According to co-founder and CEO Sahil Barua, India intends to go public at any point between December of this year and March 2022. Although the details are not yet available, the problem is expected to cost between $400 and $500 million. This is the first time the business has suggested a specific deadline for the issue



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