Delhivery, which aims to be the first in the e-logistics space to file an IPO, has now said that the company’s existing investors, which includes Tiger Global, Times Internet and Nexus Venture Partners are supporting the venture for the same, reports Economic Times.
On that note, the e-commerce focused logistics firm has received fresh funding from its investors at a higher valuation than the fund infused in the company in May last year. That time, the company had raised Rs 506 crore from Tiger Global and others, at a valuation of Rs 2,275 crore.
The current round is estimated to be close to Rs 50 crore. With the new capital coming to the company, the funds will help the company focus on its core business and turn profitable for the rest of the current financial year.
As per the report from ETTech, the company’s CEO, Sahil Barua, has said that its existing investors are supporting the company with cash as it is planning to file an IPO next year. He said:
For our capital needs of up to $10-15 million, the board has said it will be happy to put in the capital at a higher valuation, ahead of an IPO. None of our existing investors want to cash out as there is a clear liquidity event in the next 9-12 months’ time.
For its pre-IPO placement, Delhivery is also said to be in talks with funds and PE firms. For raising funding round, it was said that the company was in talks with Singapore-based GIC and China based Hillhouse Capital along with Alibaba to power its India deliveries.
Commenting about the company and its growth, Sahil said:
We are ready from an IPO perspective and it doesn’t make sense to add additional capital to our balance sheet ahead of the IPO. We are a profitable company and this will reflect in out results for the fiscal 2018. We are on track to hit $120 million in revenues for FY 2016-17, which is an 80 per cent-growth over last year. We should deliver close to 75-80 million parcels during this period.
While other details on the IPO are still unknown, Delhivery’s growth underscores the importance of last mile e-commerce delivery in the booming online retail market. Logistics focused startups have started to come up pretty rapidly to consume the logistical needs of India’s demanding and ever expanding line-up of e-commerce brands.
Founded in 2011 by a team of five co-founders — Sahil Barua, Kapil Bharati, Bhavesh Manglani, Suraj Saharan and Mohit Tandon, Delhivery has developed an end-to-end suite of omni-channel solutions which include includes management tools for global inventory, distributed order management, channel integration, customer engagement, campaign creation and management, fulfilment management and demand and channel analytics.