Delhivery, India’s largest independent e-commerce logistics startup, has raised $ 277 million in what is expected to be the last round of funding before the company files an IPO later this year.
In a regulatory filing, the Gurgaon-based startup revealed it raised $ 277 million in a round led by Boston-based investment firm Fidelity. Singapore’s sovereign wealth fund GIC, Chimera of Abu Dhabi and Britain’s Baillie Gifford also took part in the new round, whose name the startup did not specify.
The new round valued the 10-year startup at around $ 3 billion. Delhivery – which also counts SoftBank Vision Fund, Tiger Global Management, Times Internet, The Carlyle Group and Steadview Capital among its investors – has raised around $ 1.23 billion to date. The startup did not comment on Sunday.
Delhivery started life as a food delivery business, but has since grown to a full range of logistics services in over 2,300 Indian cities and over 17,500 postcodes.
It is one of a handful of startups trying to digitize the logistics market demand and supply system through a freight exchange platform.
Its platform connects shippers, agents and truckers offering road transport solutions. The startup claims the platform reduces the role of brokers, makes some of its assets such as trucking – the most popular mode of transportation for Delhivery – more efficient and ensures round-the-clock operations.
This digitization is crucial to address the inefficiencies of the Indian logistics industry which has long held back the national economy. Poor planning and forecasting of demand and supply increases transportation costs, theft, damage and delays, Bernstein analysts wrote in a report last month on India’s logistics market.
Delhivery, which says it has delivered over a billion orders, works with “all of the biggest e-commerce companies and major Indian companies,” according to its website, where it also says the startup has worked with more than 10 000 customers. For the last stage of the delivery, its couriers are allocated an area that never exceeds 2 km², which allows them to make several deliveries per day to save time.
The TAM (Total Addressable Market) of the Indian logistics market is over $ 200 billion, according to analysts at Bernstein.
The startup said late last year that it planned to invest more than $ 40 million within two years to expand and increase the size of its fleet to meet growing demand for orders as more and more people are shopping online amid the pandemic.