Delhivery Ltd, an Indian logistics and supply chain startup, has filed the paperwork to raise up to Rs 7,460 crore via an initial public offering (IPO).
The IPO comprises a fresh issue of Rs 5000 crore and an offer for sale (OFS) of up to Rs 2,460 crore by its existing promoters and shareholders.
Investors Carlyle and SoftBank are making a partial exit in the OFS. Private equity firm Carlyle Group, which first invested in the logistics startup in November 2017, is selling shares worth Rs 920 crore in the offer for sale.
Fosun Group-owned China Momentum Fund is selling Rs 400 crore worth shares via its affiliate Deli CMF Pte Ltd. Fosun invested in Delhivery in May 2021.
The OFS will also include SoftBank Group selling shares amounting to upto Rs 750 crore while the Times Internet Ltd is selling shares upto Rs 330 crore.
Delhivery co-founders will also participate in the OFS -- Kapil Bharati is selling up to Rs 14 crore, Mohit Tandon is selling up to Rs 40 crore and Suraj Saharan is selling up to Rs 6 crore.
Currently, SoftBank holds 22.78% stake, Carlyle has 7.42% stake, while Fosun has 1.11% stake in the company. Meanwhile, Bennett, Coleman and Co Ltd (Times Group) owns 1.24% stake.
The three co-founders - Kapil Bharti has 1.11%, Mohit Tondon owns 1.88% and Suraj Saharan holds 1.79% stake in the firm.
The proceeds from the issue worth Rs 2500 crore will be used for funding organic growth initiatives and Rs 1250 crore for inorganic growth via acquisitions and other strategic.
Kotak Mahindra Capital, Morgan Stanley India, BofA Securities India, Citigroup Global Markets are the book running lead managers to the issue.
The firm is the largest and fastest growing fully-integrated logistics services player in India by revenue. It has built a nation-wide network with presence in every state, servicing 17,045 PIN codes, or 88.3% of the 19,300 PIN codes in India as of June 2021.
Logistic tech startup's network infrastructure includes 124 gateways, 20 automated sort centres, 83 fulfilment centres, 35 collection points, 24 returns processing centres, 249 service centres, 120 intermediate processing centres and 2,235 direct delivery centres as of June 30, 2021, including Spoton’s 38 gateways and 145 service centres.
Its self-delivery network is augmented by 1,162 partner locations that expand its reach, provide critical flexible capacity and redundancy and Spoton’s service centres are augmented by 188 additional locations operated by business associates.
In Fiscal 2021, the firm fulfilled over 289.20 million express parcel orders, carried 373,854 tonnes of PTL freight, processed 47.37 million orders through its fulfilment centers and completed more than 46,878 truckload movements.
For fiscal year 2021, its total income stood at Rs 3838.29 crore against Rs 2988.63 crore a year ago. Net loss for the period widened at Rs 415.74 crore versus Rs 268.93 crore last year.
The Gurugram-based firm became a unicorn in 2019 when it raised $413 million in a Series F round led by SoftBank Vision Fund. Delhivery is likely to sell a 10-15% stake for $500-600 million through the planned IPO, Mint reported on 9 June. This would value the startup at around $4 billion. It aims to list before the end of FY22.
Last month, the company had onboarded three industry veterans Kalpana Morparia, former chairman of JP Morgan, South and Southeast Asia, Romesh Sobti, former CEO and MD of Indusind Bank and Saugata Gupta, Current CEO and MD of Marico as independent directors.
Backed by Japanese conglomerate SoftBank, US-based Carlyle Group and Singapore sovereign wealth fund GIC, Delhivery raised $75 million in September this year and an additional funding of $125 million (Rs 922 crore) from Addition, a fund floated by former Tiger Global executive Lee Fixel.
In May, Delhivery got nearly $277 million (Rs 2,008.6 crore) from a group led by US investment firm Fidelity and participation from GIC, Abu Dhabi-based Chimera Investment LLC and UK’s Baillie Gifford in the round.
In August this year, it also acquired Spoton Logistics Ltd for a total of Rs 1,750 crore.