Delhivery plans to file for $1 billion IPO

One of India’s fastest growing digital logistics and supply chain facilitators, Delhivery, is planning to file its draft red herring prospectus (DRHP) for an IPO by October 2021. While the IPO time table is yet to be confirmed, the company plans to complete the IPO before the end of FY22. The issue size is expected to be $1 billion, although the final figure could change based on institutional demand evinced at the roadshows.

Delhivery was founded in 2011 by Sahil Barua. Sahil is the son of former director of IIM Ahmedabad, Dr. Samir Barua. Delhivery currently handles more than 1.50 million packages per day and basically provides end-to-end logistics solutions, mainly to ecommerce platforms. The company has a team of 43,000 persons working on order procurement, execution and fulfilment. The IPO is expected to be a combination of fresh issue and an OFS.

Delhivery has some marquee PE investors backing the story. Softbank Vision Fund and Carlyle Group are among the early investors in Delhivery. In Jun-21, Delhivery had another round of funding led by Fidelity. One of the most active PE investors in Indian start-ups, Tiger Global, is also an investor in Delhivery, as are Fosun of China and Times Internet.

There are some mega digital IPOs expected this year. While Zomato IPO and CarTrade IPO are two major digital players that have completed their IPOs, there are many more big names like Paytm IPO, Nykaa, Policybazaar, MobiKwik and even Byju’s, planning an IPO either during this financial year or in the early part of the next financial year.

Read: Nykaa and Policybazaar file for IPO

Delhivery has fulfilled more than 85 crore transactions till date  and works with over 10,000 direct customers. Earlier this year, Delhivery had acquired Spoton for $300 million. While Delhivery has developed a strong B2C franchise, it will use the IPO funds to invest in further strengthening its B2B franchise also.