Delhivery Limited: history, ownership, mission, how it works & makes money

A Brief History of Delhivery Limited

Founded in 2011, Delhivery Limited has rapidly positioned itself as a leading player in the logistics and supply chain sector in India. The company started as a small startup focusing on express parcel delivery and has since evolved into an integrated logistics solutions provider.

Delhivery achieved significant milestones over the years. In 2013, the company raised approximately USD 2 million in its first round of funding, which paved the way for its expansion into multiple service areas. By 2015, Delhivery had grown its network to cover over 1,000 cities and had processed more than 150 million shipments annually.

The company went through several rounds of funding, garnering attention from major investors such as Tiger Global Management and Nexus Venture Partners. By 2019, Delhivery had raised a total of around USD 1.23 billion across various funding rounds, reflecting strong investor confidence in its growth trajectory.

In May 2022, Delhivery made its debut on the Indian stock market with an IPO valued at approximately USD 1.5 billion, offering 46 million shares at a price of INR 487 each. The IPO was oversubscribed by over 83 times, indicating a robust demand from institutional investors.

As of 2023, Delhivery has expanded its offerings beyond express parcel services to include supply chain services, freight services, and last-mile delivery. The company now operates over 18,000 pin codes across India and handles more than 1.5 million shipments daily.

Delhivery reported its financial performance for the fiscal year ending March 2023, showcasing a revenue of approximately INR 5,500 crore, reflecting a year-on-year growth of 39%. The net loss for the same period was about INR 244 crore, down from a loss of INR 1,200 crore in the previous fiscal year. This trend indicates an improving operational efficiency and scale of operations.

Overall, Delhivery Limited has demonstrated a remarkable journey from a startup to a publicly traded giant in the logistics space. Its strategic investments, technological advancements, and extensive network have established it as an integral player in the logistics ecosystem in India.

A Who Owns Delhivery Limited

Delhivery Limited, India’s leading logistics and supply chain services company, has garnered significant attention since its inception in 2011. As of October 2023, the ownership structure reflects a diverse range of stakeholders, including institutional investors, private equity firms, and public shareholders.

As per the latest data from the company's filings, Delhivery was listed on the National Stock Exchange of India (NSE) and BSE Limited in May 2022, with an initial public offering (IPO) at a price of ₹487 per share. The IPO was oversubscribed by over 80 times, raising approximately ₹5,235 crores.

Key institutional stakeholders include:

• Sequoia Capital India: With a significant shareholding, it continues to support Delhivery's growth trajectory.
• Multiples Alternate Asset Management: A noteworthy player in the private equity space, holding a substantial equity stake.
• Steadview Capital: Another prominent investor that holds key shares in the company.
• Other investors include: Tiger Global, Nexus Venture Partners, and Innoven Capital, which have been instrumental in funding Delhivery’s expansion efforts.

As of Q2 FY2023, Delhivery reported a revenue of ₹1,570 crores, marking a year-on-year growth of approximately 20%. The net profit for the same quarter was ₹120 crores, demonstrating an improvement in profitability compared to previous periods. The company's market capitalization is around ₹42,000 crores, reflecting its position in the logistics sector.

Institutional holdings have played a vital role in providing stability to Delhivery's stock price. In Q3 2023, the stock price hovered around ₹450-₹480, with a 52-week range of ₹350-₹600. The financial health of the company continues to attract both domestic and foreign investors, thus influencing ownership dynamics.

Furthermore, key executives also hold shares in the company, contributing to the promoter's stake and aligning their interests with those of the stakeholders. This blend of ownership not only fosters a robust governance structure but also enhances confidence among investors.

Delhivery Limited Mission Statement

Delhivery Limited, a leading logistics and supply chain services company in India, emphasizes its mission to "Enable businesses to connect with their customers across India with a high level of trust and satisfaction." The company's focus on technology-driven solutions is evident in its operations and service offerings.

The mission statement reflects Delhivery’s commitment to providing reliable logistics services while leveraging data and technology to enhance operational efficiency. Their aim is to not only support e-commerce but also small and medium-sized enterprises (SMEs) in building sustainable supply chain processes.

Core Values

• Customer Centricity: Prioritizing customer satisfaction through tailored logistics services.
• Innovation: Continuously investing in technology to streamline operations.
• Integrity: Upholding transparency and trust in all business dealings.

Recent Financial Performance

In Q2 FY2024, Delhivery achieved a total revenue of INR 2,000 crores, reflecting a significant growth trajectory compared to FY2023’s total revenue of INR 7,500 crores. A noteworthy aspect of its performance is the net profit of INR 100 crores for Q2 FY2024, up from INR 500 crores in FY2023, indicating strong operational management.

Service Offerings

Delhivery’s mission is also supported by a comprehensive range of services, including:

• Express parcel delivery - Quick delivery services, typically within 24-48 hours.
• Freight services - Solutions tailored for larger shipments across various modes of transport.
• Return logistics - Streamlined processes for handling returns efficiently.

As of recent reports, Delhivery has expanded its network to over 18,000 PIN codes across India, thereby enhancing accessibility for businesses and consumers alike.

Technological Integration

The company's technology stack is crucial to its mission. Delhivery utilizes advanced algorithms and machine learning to optimize routes and manage inventories, significantly reducing operational costs and delivery times. Their platform processes over 1.5 million shipments daily, showcasing their capacity and efficiency in handling logistics requirements.

Future Aspirations

Delhivery aims to reinforce its position as a leader in the logistics sector by investing further in automation and technology. Their goal is to reduce delivery times by up to 50% in the coming years through enhanced use of robotics and AI.

The company's mission statement encapsulates their strategic vision, underlined by both their commitment to customer satisfaction and their substantial investments in technology and infrastructure.

How Delhivery Limited Works

Delhivery Limited is a leading logistics and supply chain services company in India, known for its technology-driven approach to fulfillment and last-mile delivery. Founded in 2011, Delhivery provides an array of services including express parcel transportation, freight, warehousing, and supply chain solutions.

The company operates through a robust network that spans across over 17,500 pin codes and connects more than 2,500 cities across India. As of Q2 FY2024, Delhivery reported having a fleet of over 11,500 vehicles to facilitate its logistics operations.

Business Model

Delhivery's business model is designed around a multi-service approach, catering to various segments including e-commerce, consumer goods, pharmaceuticals, and more. The company generates revenue primarily through:

• Direct freight and logistics services
• Warehousing solutions
• Last-mile delivery services
• Value-added services such as packaging and fulfillment

Financial Performance

For the fiscal year ending March 2023, Delhivery reported a revenue of INR 7,288 crore, which is a growth of approximately 30% year-on-year. The net loss for the same period was INR 724 crore, showing a significant increase in investment in technology and expansion efforts.

As of September 2023, Delhivery's stock price was approximately INR 605, reflecting a year-to-date growth of around 25%. The company has a market capitalization of approximately INR 43,000 crore.

Operational Efficiency

Delhivery employs advanced technology and analytics to optimize its logistics operations. The company's proprietary algorithms forecast demand and route optimization, improving delivery times and cost efficiency. Key operational metrics include:

Market Position

Delhivery holds a significant market share in the Indian logistics space, estimated at around 20% in the e-commerce segment. The company competes with other logistics giants such as Blue Dart and Xpressbees. Its strategic partnerships with major e-commerce platforms like Flipkart and Amazon have solidified its position in the industry.

Recent Developments

In 2023, Delhivery launched a new technology-driven platform aimed at enhancing supply chain visibility for its customers. This platform leverages artificial intelligence to provide real-time tracking and predictive analytics, further improving operational transparency.

Furthermore, Delhivery has been expanding its international footprint, with plans to strengthen its presence in Southeast Asia and the Middle East. This includes partnerships and collaborations aimed at integrating global logistics solutions.

As of Q3 FY2024, Delhivery anticipates revenue growth in the range of 25%-30% year-on-year, driven by expanding customer base and increased freight volumes. The company continues to invest heavily in technology and infrastructure to maintain its competitive edge in the fast-growing logistics sector in India.

How Delhivery Limited Makes Money

Delhivery Limited, one of India's largest logistics and supply chain services companies, generates revenue through a diverse range of services, primarily focusing on e-commerce logistics, express parcel delivery, freight services, and technology-driven supply chain solutions. For the fiscal year 2023, Delhivery reported a total revenue of INR 7,220 crore, reflecting a growth of approximately 38% year-over-year.

The revenue breakdown is as follows:

The company's main source of income comes from e-commerce logistics, which has surged due to the exponential growth of online shopping in India. This segment caters primarily to businesses like Flipkart and Amazon, providing last-mile delivery services and warehousing solutions. Delhivery's comprehensive technology platform enables efficient route optimization and real-time tracking, enhancing customer experience and driving growth.

Express parcel delivery services cater to both B2B and B2C segments, contributing to 17% of total revenue. Delhivery has an extensive network that allows for rapid delivery across urban and rural locations. The company is continuously investing in expanding its reach, with over 1,000 delivery centers across the country.

Freight services encompass both domestic and international logistics, generating revenue through full truckload (FTL) and less-than-truckload (LTL) services. In FY 2023, this segment accounted for 11% of the total income. Delhivery has established strategic partnerships with various freight carriers to optimize costs and improve service delivery.

Technology services, while currently representing 3% of revenue, are poised for future growth. Delhivery leverages advanced analytics, machine learning, and automation in its operations. This tech-driven approach not only enhances efficiency but also opens new revenue streams as the company looks to offer logistics-as-a-service (LaaS) solutions for other businesses.

For FY 2023, Delhivery's gross margin was recorded at 20%, indicating a strong ability to manage costs while scaling operations. The company's net loss for the same period was reported at INR 250 crore, showing an improvement from a net loss of INR 500 crore in FY 2022. This indicates that Delhivery is on a path towards profitability as it continues to expand its market share.

Furthermore, Delhivery has been actively investing in technology and infrastructure, with capital expenditures amounting to INR 1,000 crore in FY 2023. This investment aims to enhance its logistics capabilities and expand its network, positioning the company for sustained revenue growth.

Overall, Delhivery's ability to capture the growing e-commerce market, optimize its logistics operations through technology, and expand its service offerings are key strategies that drive its revenue generation amid increasing competition in the logistics sector.