India’s Delhivery Files for Nearly $1B IPO

Delhivery

The Indian supply chain startup Delhivery has filed for an almost $1 billion initial public offering (IPO) with the Securities and Exchange Board of India.

According to media reports, the IPO will see Delhivery issuing new shares worth about $669, with the remainder of the capital used to buy existing shares. The IPO is projected to raise $997 million, just shy of the $1 billion that had been discussed in connection with the offer.

Learn more: Supply Chain Startup Delhivery Readies for $1B Mumbai IPOing in August

“Since we are an Indian company and have a substantial part of our business here, we will list locally,” CEO and Co-founder Sahil Barua said earlier this year. “We are going into a public listing sitting on $550 million in cash, and we don’t burn money.”

Based in Gurgaon in the northern Indian state of Haryana, Delhivery was founded in 2011 and has the financial backing of SoftBank Vision Fund and Carlyle Group. The IPO will be led by Kotak Mahindra Capital, Morgan Stanley India, BofA Securities and Citigroup.

Delhivery, one of the top logistics and supply chain services firms in India, aims to become the “operating system for commerce in India,” according to the company’s website. It has fulfilled more than one billion orders to over 525 million households in the country and employs more than 43,000 people. Operating around the clock, it delivers more than 1.5 million packages a day.

According to India’s Logistics Skill Council, Delhivery’s competition in the nation’s $150 billion domestic logistics arena includes Blue Dart Express — a DHL unit — and DTDC India. RedSeer Report says Delhivery was the biggest, fastest-growing company of its kind in India as of this fiscal year. The domestic logistics sector accounts for 14% of India’s GDP.

Read more: India’s B2B Supply Chain Startup AnKa SumMor Nets $1.5M to Help Brands Get Exposure

Last month, the Indian B2B supply chain startup AnKa SumMor announced it had raised $1.5 million to expand and scale its operations.

The Bengaluru-based company said it would also explore the use of artificial intelligence (AI) and machine learning (ML) to create recommendation engines for retailers and brands.