New-age logistics and supply chain start-up Delhivery has filed for an Initial Public Offering (IPO) of up to Rs7,460 crore. The proposed IPO would comprise fresh issue of Rs5,000 crore and offer for sale (OFS) of Rs2,460 crore by existing investors Carlyle, Japan’s SoftBank Vision Fund and Times Internet who are selling partial stakes. Of the five founders of Delhivery, three — Kapil Bharati, Mohit Tandon and Suraj Saharan — are also listed to sell their shares in the OFS. Delhivery is expected to be a publicly traded firm before the end of the current financial year.
Earlier this year, Sahil Barua, Co-founder and Chief Executive Officer, Delhivery, had said that the logistics start-up would go public in India anytime between December 2021 and March 2022. The company joins a group of late-stage home-grown technology firms that are on course to tap the buoyant public markets. The logistics tech company had constituted a board sub-committee for its IPO and mergers & acquisitions in January. Delhivery is the third venture from SoftBank Group Corp’s India portfolio — after PolicyBazaar and Paytm — that is IPO-bound.
Talking about the rush of internet start-ups looking to go public, Sandeep Barasia, Managing Director and Chief Business Officer, Delhivery, said that he expects adequate interest as public market investors typically don’t plough all their money into one company in a sector. “We are a confluence between online and offline. We are one of the best ways to play the India online story,” said Barasia, who is confident the company will grow annually by 50-55% in the near future.
Aside from providing logistics to e-commerce firms, which accounts for the largest chunk of revenues, Delhivery’s B2B business operates part- and full-truck load freight, supply chain services and cross-border logistics. Supply-chain services, an 18-month-old business for Delhivery, contribute 10% of its total revenue, managing all supply chain needs of large companies.