Supply Chain Startup Delhivery Readies For $1B Mumbai IPO

Supply chain services startup Delhivery is getting ready to file an initial public offering in India that could raise an estimated $1 billion, Bloomberg reported Wednesday (Aug. 25).

The company is reportedly working on a draft prospectus that could be filed in October with a March 2022 listing target in Mumbai. The offering could be comprised of new and existing shares, one source told the news outlet.

Delhivery can list on the Bombay Stock Exchange, the National Stock Exchange, or on both, per information from the Securities and Exchange Board of India. Both exchanges are located in Mumbai.

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Headquartered 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 company is still working out details of the issue, including its size. However, given that we already have substantial cash on our balance sheet, we expect it to be a primary issue in the $400-500 million range,” Delhivery CEO and Co-founder Sahil Barua said in a press release earlier this summer.

Related news: FedEx Investing $100M In India’s Delhivery To Expand International Shipping

“Since we are an Indian company and have a substantial part of our business here, we will list locally,” he added. “We are going into a public listing sitting on $550 million in cash, and we don’t burn money.” Barua was formerly a consultant at Bain & Company.

Delhivery is among the top logistics and supply chain services firms in India and is striving to be the “operating system for commerce in India,” per its website. It has fulfilled more than 1 billion orders to over 525 million households in the country and employs over 43,000 people. It delivers more than 1.5 million packages daily and operates 24/7 .