Joining the list of startups waiting to go public, Delhi NCR based Delhivery has filed its draft red herring prospectus (DRHP) for raising INR 7,460 Cr. As in the case of several IPO-bound new-age companies, Delhivery also is running into losses.
During the first quarter (April-June) of the current financial year (FY22), the logistics unicorn recorded a consolidated net loss of INR 129.58 Cr.
Its revenue from operations for the same period was INR 1,317.72. The DRHP, however, did not mention the financials for the corresponding quarter of the previous fiscal (FY21).
The losses came on the back of high expenses. The total expenditure in the quarter ended June was INR 1,493.59 Cr.
The financial statement showed that the freight, handling and servicing cost and employee benefits expense formed the chunk of its expenses at INR 867.9 Cr and INR 206.45 Cr respectively in the same quarter.
In the last financial year (FY21), the SoftBank-backed logistics unicorn registered nearly 55% increase in its net losses at INR 415.74 Cr, compared to INR 268.92 Cr in FY20. Its losses, however, had narrowed down in FY20 from a massive INR 1,783.30 Cr net loss in FY19.
The loss was induced mainly due to a surge in expenses. In FY21, its total expenditure increased 26.32% to INR 4,212.70 Cr.
The company, however, improved its operational revenue by 31.14% to INR 3,646.52 Cr in the last financial year.
On the debt front, as of August 31, 2021, the outstanding debt of the company and its subsidiaries on a consolidated basis stood at INR 398.57 Cr, out of the total sanctioned amount of INR 686.29 Cr.
The offer consists of a fresh issue of INR 5,000 Cr and an offer for sale (OFS) of INR 2,460 Cr. The proceeds from the OFS will not be routed to the company and the targeted INR 2,460 Cr from the offer for sale will not form part of the net proceeds.
Out of the net proceeds of INR 5,000 Cr, the company will utilise INR 1,250 Cr or 25% of the proceeds for funding inorganic growth through acquisitions and investments. Further, half of the proceeds (INR 2,500 Cr) will be used for financing organic initiatives.
It also plans to utilise up to 25% of the net process for general corporate purposes. However, the amount will be finalised based on the offer price.
According to several reports, the company is expected to hit the public markets at $4 Bn-$4.5 Bn valuation.
The Gurugram-based unicorn offers logistics services such as express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B & B2C warehousing, end-to-end supply chain services and technology services.
Last month, Delhivery had appointed Kalpana Moparia (former chairman of J.P. Morgan (southeast Asia), Romesh Sobti (former MD & CEO of Indusind Bank) and Sugata Gupta (MD and CEO of Marico Limited) as independent directors.
A few weeks back, the company had closed a funding round of $125 Mn from Lee Fixel’s venture capital firm Addition taking its total funding to $1.4 Bn.