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Delhivery Raises Around $5M From NVP; Gharpay Integration Issue Resolved

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Logistics company Delhivery (SSL Logistics) has raised close to $5 million in Series B investment from Nexus Venture Partners, reports TechCircle. When we contacted, Delhivery CEO Sahil Barua said he cannot comment on this investment right now but he neither confirmed or denied this investment.

Prior to this, Indiatimes had bought a minority stake for an undisclosed amount in June 2012. The company had then said it was looking for a strategic relationship in terms of systems and processes to build a tighter integration and control in the last mile delivery services.

Launched in May 2011, Delhivery provides logistics solutions for e-commerce companies. This includes solutions like last mile delivery, third party warehousing, reverse logistics and multiple payment collection and processing options. It also provides vendor-to-warehouse and direct vendor-to-customer shipping solutions.

In June 2013, Delhivery had acquired the offline cash collection network of Gharpay along with the Gharpay brand, however the company was facing integration issues with Gharpay about a month later and had suspended Gharpay deliveries for some clients until yesterday. In an email to its clients, Delhivery had explained it was facing an issue both from a technological and an operational (contractual) standpoint, although a Quora thread suggested that Delhivery’s attempt to change contracts for Gharpay clients was causing these problems. (More on that here).

Barua told Medianama that the issue has now been resolved and all the clients have now been transitioned to Delhivery. While he declined to share the number of clients Delhivery currently has, he claimed that they currently have more than 200 clients. At the time of its acquisition by Delhivery, Gharpay had 750 clients.

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Interestingly, its worth noting that Nexus Ventures Partners has also invested in an order management and fulfillment solution provider Unicommerce in May 2013. The company had then claimed that its service is being by e-commerce companies like Snapdeal.com, Jabong.com and currently manages over 1.5 million product shipments per month across 50+ warehouses and 1000+ concurrent users globally.

Besides this, there are players like DTDC which had launched a specialized e-commerce logistics initiative called DotZot in March 2013, Chhotu.inMuditaHolisol, Ecom Express and others. Courier companies Bluedart and FedEx also offer specialized logistics solutions for e-commerce companies and India Post was planning to launch a delivery service for e-retailers.

Update: Headline changed to indicate the Gharpay integration issue has been resolved.

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