Delhivery is a Gurgaon-based logistics and supply chain company. It was founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati. The company has over 85 fulfillment centers, 24 automated sort centers, 70 hubs, 7,500+ partner centers, and 3,000+ direct delivery centers, as of 2021. It has built a nationwide network in every state, servicing 17,045 PIN codes, or 88.3 percent of the 19,300 PIN codes in India. Delhivery is the largest fully integrated logistics services player in India by revenue.
The company provides a full range of logistics services, including express parcel and heavy goods delivery, part truckload freight (“PTL”), truckload freight (“TL”), warehousing, supply chain solutions, cross border express and freight services, and supply chain software, along with value-added services, such as e-commerce return services, payment collection and processing, installation and assembly services and fraud detection.
Funding & IPO –
The company became a unicorn in 2019 when it raised $413 million from SoftBank Vision Fund in a Series F round. The company is coming up with an IPO of Rs 5235 Cr. It will raise Rs 4,000 Cr. via issuance of fresh equity shares with a face value of Re 1 each, and an Offer for Sale of Rs 1,235 Cr. The Delhivery IPO price band has been fixed at Rs 462 to Rs 487 per equity share. Investors participating in OFS include Deli CMF (Fosun Group), CA Swift Investments, SVF Doorbell, and Times Internet.
The company allocated a total of 4,81,87,860 equity shares to anchor investors at Rs 487 apiece, aggregating the transaction size to Rs 2,346.74 Cr. The net fresh issue proceeds will be utilized for funding organic growth initiatives, and inorganic growth through acquisitions and other strategic initiatives, besides general corporate purposes.
Profit & Loss Statement –
|YOY Change %||58.29%||76.19%||23.87%|
|YOY Change %||97.58%||-12.09%||20.41%|
|Depreciation, Interest, and Taxes||-58.58||-110.99||-303.57||-441.67|
|Profit & Loss||-684.46||-1768.34||-264.00||-290.79|
Balance Sheet Statement –
|Net Worth / Equity||-2176.71||3381.81||3122.50||2862.01|
Cash Flow Statement –
|Net Inc/Dec In Cash and Cash Equivalent||-150.97||1655.17||-1594.10||187.28|
|Cash and Cash Equivalent – Beginning of the Year||155.47||4.50||1659.67||65.57|
|Cash and Cash Equivalent – End of the Year||4.50||1659.67||65.57||252.85|
Key Takeaways –
- Delhivery is the largest fully integrated logistics services player in India by revenue.
- Delhivery provides a full range of logistics services.
- The net fresh issue proceeds will be utilized for funding organic growth initiatives, and inorganic growth
- The company is going to list at a market cap/sales of 6.07x with a market cap of Rs35,283.2 Cr. whereas its peers namely BlueDart and Mahindra Logistics are trading at market cap/sales of 3.66x and 0.84x.
- A loss-making company.
- Sales increasing YOY.
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