PE-backed Delhivery files for India IPO
India-based e-commerce logistics provider Delhivery is looking to raise up to INR74.6 billion ($1 billion) through a domestic IPO that would facilitate partial exits for The Carlyle Group, Fosun Group, SoftBank Vision Fund 1, and Times Internet.
It is the latest in a spate of pre-profit start-ups to pursue public listings on local exchanges. The likes of payments players Paytm and Mobikwik, insurance portal PolicyBazaar, and budget hotel platform Oyo have all made filings. Beauty e-commerce business Nykaa is in the process of raising INR53.5 billion, while food delivery platform Zomato completed a INR93.7 billion offering in July
Delhivery plans to sell INR50 billion in new shares, while existing shareholders will offload INR24.6 billion in equity, according to a prospectus. Carlyle and SoftBank are set to make the biggest windfalls through the secondary offering, receiving INR9.2 billion and INR7.5 billion, respectively
SoftBank is the largest external investor with 22.78%, followed by Nexus Venture Partners with 10.62%, Carlyle with 7.42%, Canada Pension Plan Investment Board (CPPIB) with 7.06%, Times Internet with 6.34%, and Tiger Global Management with 6.1%. Sub-5% shareholders include GIC, Falcon Edge Capital, Chimera Financial Investments, and Steadview Capital.
Delhivery claims to be India’s largest and fastest-growing fully-integrated logistics services player based on revenue for the 2021 financial year, with a 20% share of the e-commerce parcel market. Areas of coverage include express parcel delivery and express air, partial-truckload (PTL) and full-truckload (FTL) transportation, cross-border shipments, B2B and B2C warehousing, and third-party logistics (3PL).
More than one billion express parcels have been shipped to date, as well as 845,000 tons of PTL freight. The company has more than 21,300 active customers, including e-commerce marketplaces, direct-to-consumer retailers, and businesses – of varying size – across the fast-moving consumer goods, electronics, lifestyle, automotive, and manufacturing industries.
Delhivery’s logistics network comprises 12.42 million square feet of facilities that cover more than 17,000 pin codes. It operates 124 large logistics facilities, 20 automated sorting centers, 83 fulfillment centers, 35 collection points, 24 returns processing centers, 249 service centers, 120 intermediate processing centers, and 2,235 direct delivery centers. It also works with over 1,100 partner locations.
In August, the company acquired industry peer Spoton Logistics with a view to strengthening its B2B capabilities. This facilitated an exit for several private equity investors.
Income for the 12 months ended March 2021 was INR38.4 billion, up from INR29.9 billion the previous year. Over the same period, the net loss widened from INR2.68 billion to INR4.16 billion, largely driven by rising freight, handling, and servicing costs.
Delhivery has received more than $1.4 billion in private funding. Addition, a PE firm established by Lee Fixel, who previously invested in the company while at Tiger Global, invested $125 million in September. Several months earlier, Delhivery received $277 million from Baillie Gifford, Chimera Financial Investments, Fidelity, and GIC, and $100 million from FedEx.
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