Indian logistics giant Delhivery recently announced its latest fundraising round, securing $277 million from investors. The strategic funding round included world-renowned technology investors such as SoftBank and Carlyle, Tiger Global Management, Fosun Industrial and other prominent figures in the logistics and venture capital industries.
This latest funding round brings Delhivery’s total fundraising amount to $490 million.
Indian logistics giant Delhivery raises $277 million
Delhivery is an e-commerce logistics and supply chain solution provider, founded in 2011. Based out of Gurgaon, it serves a wide range of businesses across India. The company is among India’s leading e-commerce logistics companies with a customer base of over 25,000 sellers and 30 million users.
Delhivery operates its network of logistics centres, has over 18 fulfilment centres across the country (including 8 mega warehouses) and provides multiple delivery options ranging from courier service to medium-sized regular parcels. In addition to this, the company also offers warehouse management solutions and transportation services for efficient supply chain operations. It also offers real-time order tracking and same day delivery to customers.
Recently, Delhivery raised around $277 million in funding from existing investors Softbank Vision Fund and Carlyle Group at a valuation of around $2 billion. This funding was used for further expansion plans into new markets (Middle East & Africa) and consolidation of existing businesses into other markets such as Europe & USA.
Overview of the latest round of funding
Delhivery, a leading Indian third-party logistics provider, has recently announced that it has raised $277 million in a fresh round of funding. This new round was led by SoftBank Group Corp and Tiger Global Management, along with additional support from existing investors. The funding from this latest financing round will facilitate growth and operational expansion for Delhivery’s rapidly-growing business.
The new investment is an extension of the previous $413 million capital raise in 2019, which included investments from SoftBank Vision Fund, Carlyle Group LP, Fosun International Ltd., and others. Since its launch in 2011, Delhivery has quickly become one of India’s premier third-party logistics providers due to its ability to offer efficient delivery solutions for both e-commerce companies and traditional businesses.
The new funding will enable Delhivery to expand its presence into Indian markets and leverage the latest technologies to streamline shipping throughout the supply chain. In addition, the company is also focusing on building a more comprehensive suite of services such as reverse logistics and retail distribution services to help brands develop their e-commerce presence in India. By leveraging this increased investment, Delhivery can look forward to continued growth as it expands its operations across the country.
Details of the Funding
Indian logistics giant Delhivery has raised $277 million from investors in its latest fundraising round. The round was led by SoftBank Vision Fund 2, and included existing investors such as Carlyle Group and Fidelity International. This latest round brings Delhivery’s total equity funding to over $840 million.
Let’s take a closer look at the details of the funding:
Who are the investors?
Delhivery has announced the closure of its latest funding round, raising $277 million from SoftBank Vision Fund 2 and existing investors. The funding values Delhivery, India’s largest logistics platform, at a post-money valuation of $2.4 billion. This brings the total capital raised by Delhivery to date to over $410 million.
SoftBank Vision Fund 2 led the funding with a substantial investment and was joined by return investors Carlyle Group, Fosun Group, Multiples Alternate Asset Management and Nexus Venture Partners. The capital raised will accelerate investments in technology, data science capabilities and expand physical infrastructure to meet customer needs better while continuing the path to profitability on top line revenue expansion.
The support of Softbank Vision Fund 2 further strengthens the tremendous faith that existing investors have shown in Delhivery’s trajectory since its founding in 2011. Estimating itself as an Indian home-grown unicorn, Delhivery continues its focus on transforming commerce across India with deep expertise in its delivery stack powered by technology and people.
What is the purpose of the investment?
Delhivery’s funding will go towards streamlining its logistics operations, improving the delivery experiences of customers across its omnichannel platform, expanding its presence in both Tier I and Tier II cities, and overall scaling up the business operations.
The business aims to create a complete fulfilment solution for e-commerce, fashion and FMCG (fast-moving consumer goods) categories. The company has been in talks with South Korean venture capital firm KIP Ventures and China’s JOY Capital for additional investments between $150 Million to $200 Million over the next 12 months.
This investment is part of Delhivery’s long-term growth strategies where it will focus on:
- strengthening its network infrastructure
- enhancing technology capabilities through artificial intelligence, automated data capture systems and automation at sorting centres
- building new warehouses
- expanding its last-mile delivery network
- investing in startups that are innovating around logistics
- exploring overseas opportunities
With this fresh funding under its belt, Delhivery is looking forward to delivering high speed services across India.
What are the terms of the investment?
The exact terms of Delhivery’s most recent investments have not been disclosed. However, as evident from the official statement, some investors include SoftBank Vision Fund 2, GIC and CPPIB.
- SoftBank has invested $113.4 million for about a 14.2% stake in Delhivery.
- While GIC has chaired an additional $158 million at a valuation of over $2 Bn, CPPIB has led a Nasdaq listing worth $5.5 million.
This additional funding is expected to help accelerate the development of new products and services, increase penetration in newer markets, provide support to small businesses, and enable faster deliveries across India. Going forward, it is expected that this investment round will enable the logistics firm to build on its market-leading position in e-commerce fulfilment by deepening further its offering with technology-led last mile delivery solutions for businesses nationwide.
Impact of the Investment
Indian logistics giant Delhivery has recently raised a whopping $277 million from investors. This investment is expected to tremendously impact the company’s operations and infrastructure. It is also expected to spur further growth and expansion of the company, enabling it to better serve its customers.
Let’s take a closer look at how this investment has impacted the company:
How will the investment be used?
Delhivery’s new investment round of $277 million is the largest funding round achieved by a logistics startup in India. This new capital will provide Delhivery with greater resources to expand its business, enhance its infrastructure and bring advanced technology solutions to India’s freight, express, and e-commerce delivery market.
The funds will also be used to further develop and cultivate an environment of innovation that allows Delhivery to improve its existing services. This includes investments in technology, automation and service enhancement capabilities that improve the customer experience and help reduce costs.
In addition, the funds will be used to speed up expansion into new markets beyond the 13 Indian cities where Delhivery provides express parcel delivery services. This will drive employment opportunities for local communities across India and enable businesses of all sizes across India to reach customers in far away locations more efficiently and economically than ever before.
What are the expected outcomes?
The latest round of investment from major investors including Tiger Global, Carquest, Carlyle Asia Partners and others will bring Delhivery’s total funds raised to around $430 million. The company is now valued at a whopping $1.6 billion. The funding is expected to enhance technology and expand operations in India and abroad.
The success of Delhivery reflects the shifted e-commerce marketplace trend in India over the years. With the help of technology, consumers have great access to various services that would benefit them greatly in terms of ease, convenience and cost savings. The latest investment will help Delhivery further its commitment towards driving efficiency within its operations which allows it to deliver better services for customers across different industries such as retail and e-commerce.
Furthermore, it is expected that the new injection of funds for investments will help increase the overall efficiency of delivery processes and reduce logistics cost for customers by providing better insight into shipment data. This could enable enhanced customer service by providing them with more detailed information about their shipments and quicker delivery times compared with other major players currently operating within the Indian market.
This might also help propel consumer confidence when dealing with e-commerce businesses due to improved transparency thanks to more accurate data being made available on shipments delivered by Delhivery services across India, thus providing an overall improved customer experience with such transactions.