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Delhivery files DRHP with SEBI to raise Rs 7,460 crore via IPO

Delhivery, a logistics startup, filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Tuesday, to raise Rs 7,460 crore through an initial public offering (IPO).

Top view of Delhivery largest trucking terminal at Bilaspur

Courtesy: Delhivery

According to DRHP filing, the new-age logistics startup will raise Rs 5,000 crore via the issuance of fresh shares, with an additional Rs 2,460 crore raised through an offer for sale (OFS) in which some of its existing investors will offload their stakes in the public market.

Key shareholders diluting their holdings in the IPO are SoftBank, led by Masayoshi Son, which will liquidate shares worth Rs 750 crore, alongside Carlyle Group is expected to sell shares for Rs 920 crore and Times Internet will be trading shares worth Rs 330 crore. Three of the company’s founders Mohit Tandon, Kapil Bharati, and Suraj Saharan, will sell their shares worth Rs 40 crore, Rs 14 crore, and Rs 6 crore, respectively.

Delhivery stated that it will allocate Rs. 2,500 crore of the IPO proceeds to fuel organic growth initiatives, while Rs 1,250 crore for inorganic growth via acquisitions, and the rest funds for other strategic investments.

The startup, last month, secured $125 million in a funding round led by Lee Fixel’s venture capital firm Addition, reported a loss of Rs 415.5 crore, up 55 percent from Rs 267.9 crore in FY20. However, the overall revenue of the logistic unicorn surged by 28 percent from Rs 2,988.6 crore in FY 20 to Rs 3,838.2 crore in FY 21. Its expenses climbed from Rs 3,257.4 crore in FY 20 to Rs 4,212.7 crore in FY 21.

SoftBank currently owns a 22.78 percent stake in the Gurgaon-based startup. Nexus Venture Partners and Carlyle Group are the company’s other investors, with 10.62 percent and 7.42 percent ownership, respectively. Sahil Barua, Mohit Tandon, Suraj Saharan, and Kapil Bharti, the company’s founders, own merely 6.97 percent of the company. Delhivery is also backed by other investors which include Canada Pension Plan Investment Board, Fidelity Management, and Tiger Global Management.

Delhivery Shareholding Pattern

Source: Fintrackr

The logistics and supply chain services startup, which was founded in 2011, provides services such as express parcel delivery, LTL and FTL freight, reverse logistics, cross-border, B2B and B2C warehousing, end-to-end supply chain services, and technology. The company operates a pan-India network and offers its logistics services across 17,045 postal index number (PIN) codes.

The startup claims to have provided supply chain solutions to a distinct base of 21,342 active customers, including e-commerce marketplaces, D2C e-tailers, and enterprises and SMEs among numerous verticals such as FMCG, consumer electronics, lifestyle, retail, consumer durables, automotive, and manufacturing, in the three months ending June 30, 2021.

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