E-commerce logistics services provider Delhivery has raised $35 million in Series C round of funding led by Multiples Alternate Asset Management, with participation from existing investors Times Internet and Nexus Venture Partners, reports The Economic Times. Delhivery had raised close to $5 million in Series B investment from Nexus Venture Partners in September 2013, and Times Internet* had bought a minority stake in the company for an undisclosed amount in June 2012.
Delhivery co-founder Sahil Barua told the publication that the funds will be used to expand Delhivery’s network, fulfillment space and technology portfolio. Barua claimed that Delhivery is currently present in 180 towns and cities across India, and plans to expand it to 260 by the end of this year, though the Delhivery website indicates that it’s present in 150 cities. The report pegs the value of Delhivery at Rs 500 crore after this latest round of investment, though the details of the exact stake acquired by Multiples isn’t clear.
Founded 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.
Delivery had acquired the offline cash collection network of Gharpay and the Gharpay brand for an undisclosed amount in June 2013. It’s worth noting that a month after the acquisition the company had faced integration issues with Gharpay and had to suspend Gharpay deliveries for some clients for a short period.
E-tail logistics space gaining momentum
– Last month, mail and logistics group Deutsche Post DHL (DPDHL) chose India to pilot its e-commerce logistics business model for Asia-Pacific. It’s Indian subsidiary Blue Dart Express will conduct the pilot project on behalf of DPDHL. The company told DNA that it would invest €100 million in the country over the next two years to build the infrastructure for this business.
– In April this year Amazon India had started working with kirana stores in Bangalore for in-store pick up of products ordered from its website. The company had launched its third-party logistics service in India in November 2013.
– Flipkart opened up its logistics arm eKart Logistics to other operators, this year in February. eKart was originally created to serve WS Retail, Flipkart’s B2C side. Kartrocket had also opened its shipping solution Shiprocket to all e-tailers in India, back in December last year.
– Jabong had also launched a third-party logistics service called JaVAS (Jabong Value Added Services), in December 2012, which was later sold to Gurgaon-based QuickDel Logistics and has now been rebranded Gojavas.
– In November 2013, courier and logistics company DTDC launched an e-commerce marketplace focused on Indians who want to send gifts to friends and relatives living abroad. It had earlier launched a logistics solution for e-commerce retailers called DotZot.
– Distribution and Supply Chain Solution company Gati had also launched an e-commerce website, GatiConnect. Earlier this month, Gati reported in its annual report that its e-commerce division generated revenues of Rs 40.7 crore and recorded a compounded annual growth rate (CAGR) of 130%. As of March 2014, e-commerce contributed 19% of Gati’s overall business.
Disclosure: Times Internet is an advertiser with us this month.