Planning to enter high-growth international markets similar to India: Delhivery
The Gurugram-based company fixed a price band of Rs 462-487 a share for its Rs 5,235-crore initial public offering (IPO) which will open for subscription on May 11 for three days.
- May 5, 2022,
- Updated May 5, 2022 3:47 PM IST
Logistics and supply-chain start-up Delhivery on Thursday said that their future strategy is to capture untapped growth vectors. The Gurugram-based company fixed a price band of Rs 462-487 a share for its Rs 5,235-crore initial public offering (IPO) which will open for subscription on May 11 for three days.
The firm is looking at expanding investments in infrastructure and network and create new adjacent growth vectors like financial services, distribution, etc. Sandeep Barasia, Executive Director and Chief Business Ofiicer, Delhivery Limited, said that the company wants to expand into high-growth international markets which are similar to India.
"Our growth strategy also includes pursuing strategic alliances and select acquisition and investment opportunities," he added.
The company wants to expand into offline commerce on the back of industrial activity and cross-border trade, and digital consumption through e-commerce and omnichannel sales. Its revenue from operations for FY2022 (for 9 months) was Rs 5170 crores and between FY19-21, it grew at a CAGR of 48.49 per cent, the company said.
"Indian logistics market is large and highly fragmented. In India, direct logistics spend is $216 billion while in the US and China it's $1470 billion. The share of top 10 organized players here is just about 1.5 per cent whereas in the US it's 15 per cent and in China it's nearly 7-10 per cent," Barasia said.
He added that Delhivery has a massive TAM (total addressable market) which is around $316-318 billion. "This includes express parcel, truckload freight, supply chain services and cross-border air. We have an integrated platform with a full range of supply chain services and a unified network infrastructure inter-operable across business lines and services," he said.
The company said that it shipped 1.2 billion express parcels since inception and its e-commerce market share stands at 24-25 per cent. "We are well placed to capitalise on adjacent growth vectors. We have an asset-light business model and rapid growth at scale which improves profitability. We have built scale and new capabilities through strategic alliances and acquisitions like Spoton, Primaseller, Roadpiper, etc. We have a direct access to FedEx global express network," Barasia added.
In May, Delhivery announced that it had raised $275 million in a primary funding round, led by Fidelity Management and Research Company. It became a unicorn in 2019 after raising $413 million in a Series F round led by SoftBank Vision Fund.
Also read: Delhivery IPO to open on May 11: Price band, issue size, all details here
Logistics and supply-chain start-up Delhivery on Thursday said that their future strategy is to capture untapped growth vectors. The Gurugram-based company fixed a price band of Rs 462-487 a share for its Rs 5,235-crore initial public offering (IPO) which will open for subscription on May 11 for three days.
The firm is looking at expanding investments in infrastructure and network and create new adjacent growth vectors like financial services, distribution, etc. Sandeep Barasia, Executive Director and Chief Business Ofiicer, Delhivery Limited, said that the company wants to expand into high-growth international markets which are similar to India.
"Our growth strategy also includes pursuing strategic alliances and select acquisition and investment opportunities," he added.
The company wants to expand into offline commerce on the back of industrial activity and cross-border trade, and digital consumption through e-commerce and omnichannel sales. Its revenue from operations for FY2022 (for 9 months) was Rs 5170 crores and between FY19-21, it grew at a CAGR of 48.49 per cent, the company said.
"Indian logistics market is large and highly fragmented. In India, direct logistics spend is $216 billion while in the US and China it's $1470 billion. The share of top 10 organized players here is just about 1.5 per cent whereas in the US it's 15 per cent and in China it's nearly 7-10 per cent," Barasia said.
He added that Delhivery has a massive TAM (total addressable market) which is around $316-318 billion. "This includes express parcel, truckload freight, supply chain services and cross-border air. We have an integrated platform with a full range of supply chain services and a unified network infrastructure inter-operable across business lines and services," he said.
The company said that it shipped 1.2 billion express parcels since inception and its e-commerce market share stands at 24-25 per cent. "We are well placed to capitalise on adjacent growth vectors. We have an asset-light business model and rapid growth at scale which improves profitability. We have built scale and new capabilities through strategic alliances and acquisitions like Spoton, Primaseller, Roadpiper, etc. We have a direct access to FedEx global express network," Barasia added.
In May, Delhivery announced that it had raised $275 million in a primary funding round, led by Fidelity Management and Research Company. It became a unicorn in 2019 after raising $413 million in a Series F round led by SoftBank Vision Fund.
Also read: Delhivery IPO to open on May 11: Price band, issue size, all details here