E-commerce logistics services provider Delhivery has raised $30 million from Chinese conglomerate Fosun International. This additional investment is a part of the $100 Mn funding the company raised in March from The Carlyle Group, as indicated by ETTech. The company currently services 800 cities, 9000 pin codes with a network of 12 fulfilment centres. Delhivery claims it fulfils 10 million shipments a month.
The report also states that this would be the last round of funding before the company goes public.
In May 2015, the company had raised $85 million in a Series D round of funding led by Tiger Global Management and participation from existing investors including Multiples Alternate Asset Management, Nexus Venture Partners and Times Internet Limited.
Delhivery had previously raised $35 million in a Series C round of funding led by Multiples Alternate Asset Management, and participation from investors Times Internet and Nexus Venture Partners. Prior to this, the platform 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 competes with Gati’s e-commerce business, Gati e-connect. Note, in the last quarter Gati’s profit fell 40 per cent. The company had stated stagnation in e-commerce growth and lingering effects of demonetization as the reason for the lower profits. During demonetization, Gati was forced to reduce the number of pin-codes it delivered to, fire people, and switch to digital payments. Cash on delivery was a major component of ecommerce purchases, and those dried up during demonetization.
Other than Gati, it also competes with Rivigo which had raised $75 million from an affiliate of Warburg Pincus in November last year. Other players in the space include Locus which had raised $2.75 million from Exfinity Ventures in May last year and BlackBuck which had raised $70 million in March this year from Sands Capital.
For the financial year ending March 2016, Delhivery’s losses stood at Rs 317 crore, compared to Rs 71 crore in FY 2014-15. Revenue grew to Rs 495 crore during the same period, compared with Rs 228 crore in the previous year, as reported by EtTech.