Delhivery Targets $1 Bn Fundraise Via IPO; To File in October

SUMMARY

Delhivery plans to file its DRHP by October this year to raise $1 Bn

It is aiming for a India listing by March 2022; the unicorn could be offering both new and existing shares; listing may include a secondary sale of shares enabling exit of some investors

Delhivery is a logistics and supply chain startup offering services, including express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B & B2C warehousing and technology services

Logistics and supply chain startup Delhivery plans to file its draft red herring prospectus (DRHP) by October this year for its initial public offering (IPO), to raise nearly $1 Bn.

The logistics unicorn, backed by SoftBank Vision Fund and Carlyle Group Inc., could be offering both new and existing shares.

Inc42 reached out to Delhivery, however, it declined to comment on the development. It is aiming for an India listing before March 2022, according to reports.

Founded in 2011 by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati and Suraj Saharan, Delhivery offers several logistics services, including express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B & B2C warehousing and technology services.

The startup claims to have over 10,000 direct customers and has completed nearly 850 Mn transactions since its inception.

In an interview in June this year, Barua confirmed that the startup has a cash balance of around $550 Mn, and has put in place a sub-committee for its IPO and other M&A activities back in January 2021.

In 2019, the startup entered the unicorn club after raising $413 Mn from SoftBank and other investors. It has raised a total of $959.6 Mn from Nexus Venture Partners, Multiples, CPP Investment Board and others.

In FY2021, the logistics unicorn generated annual revenue of INR 3,700 Cr.

Delhivery is already said to be in talks with bankers such as Kotak Mahindra Capital Company, Morgan Stanley, Citi, ICICISecurities, JP Morgan and Bank of America for the IPO.

The listing is also speculated to include a secondary sale of shares to enable the exit of some investors.