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.
Competition
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.
Financials
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.
