Delhivery: Transforming India's Logistics Landscape with Technology and Innovation

Delhivery Company Highlights

• Founded: 2011
• Founders: Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, Kapil Bharati
• Headquarters: Gurgaon, Haryana, India
• Industry: Logistics and Supply Chain
• Business Model: Technology-driven logistics services focused on e-commerce fulfillment, last-mile delivery, warehousing, freight forwarding, and reverse logistics.
• Listed: The company went public with an IPO in May 2022, raising ₹5,235 crores.
• Key Investors: SoftBank, Tiger Global, and Carlyle Group, among others.
• Employees: Over 35,000 employees across India.

About Us

Delhivery is a leading logistics and supply chain company in India, providing an integrated suite of services that support businesses' e-commerce needs. Known for its innovative use of technology, Delhivery offers services such as last-mile delivery, freight, and warehousing. The company operates one of the largest logistics networks in India, reaching over 18,000 pin codes and offering reliable, scalable services to thousands of customers across the country. Their focus is on improving efficiency and transforming the logistics experience by leveraging data analytics, AI, and automation.

Delhivery caters to a diverse range of industries, including e-commerce, pharmaceuticals, consumer goods, and more. The company is also expanding into new verticals such as B2B logistics and international shipping.

Industry Overview

India’s logistics and supply chain industry is projected to grow substantially due to the booming e-commerce sector. The industry is expected to reach $200 billion by 2025, growing at a compound annual growth rate (CAGR) of around 10-12%. The demand for efficient logistics services is driven by technological advancements, with companies like Delhivery at the forefront. Innovations in AI, machine learning, and blockchain are being increasingly adopted to enhance operational efficiency, optimize delivery routes, and ensure transparency.

Delhivery's competitors in the Indian logistics market include companies like Blue Dart, Ekart Logistics, DTDC, and XpressBees, but Delhivery differentiates itself with its vast network, end-to-end service offering, and technology-led approach.

Delhivery Founders and Team

Delhivery was founded in 2011 by five young entrepreneurs:

1. Sahil Barua (CEO)
2. Mohit Tandon (COO)
3. Bhavesh Manglani
4. Suraj Saharan
5. Kapil Bharati

They all met at Bharati Vidyapeeth in Pune, where they were classmates, and started the venture with a vision to build a logistics company that could leverage technology to transform India's supply chain sector. Sahil Barua, in particular, played a significant role in shaping Delhivery’s strategy and growth, focusing on building a tech-first logistics company.

The team initially struggled with building a scalable model, but over time, they successfully raised capital from investors and expanded Delhivery's operations across India. Their early years involved overcoming the challenge of setting up a national infrastructure, dealing with logistics inefficiencies, and competing with established players in the market.

Delhivery Startup Story

Delhivery started its journey by focusing on providing courier services for e-commerce companies. At the time, India's logistics sector was fragmented, and supply chain processes were cumbersome, especially for growing online businesses. The founders recognized a gap in the market and wanted to create an integrated logistics platform that would serve e-commerce companies better by using technology to streamline operations.

In 2011, they launched their first warehouse and started with a fleet of small vehicles for deliveries. They expanded rapidly due to their innovative approach of combining tech with logistics. By 2012, Delhivery had raised its first round of funding from investors, which allowed them to build a broader infrastructure, including a more extensive network of hubs and a sophisticated technology stack.

The turning point for Delhivery came in 2014 when they expanded into freight and B2B logistics. This allowed them to serve a broader customer base, including large corporations and SMEs. By 2017, Delhivery had captured a significant share of the e-commerce logistics market, making it a leading player in India.

In 2021, Delhivery went public with its IPO, marking a major milestone in its journey from a startup to a unicorn.

Mission:
Delhivery’s mission is to provide world-class logistics and supply chain solutions by leveraging technology, data analytics, and infrastructure to create an efficient and seamless experience for businesses and consumers alike. They aim to simplify the logistics process in India, making it more scalable, accessible, and transparent.

Vision:
Delhivery envisions becoming the leading integrated logistics company in India, known for innovation and efficiency. Their long-term goal is to establish a network that serves a diverse range of industries—e-commerce, manufacturing, pharmaceuticals, and more—while building a logistics ecosystem that is data-driven and capable of meeting future demands.

Goals:

1. Expand Infrastructure: Delhivery aims to further expand its national network of warehouses, delivery hubs, and fulfillment centers to cover even more pin codes across India.
2. Leverage Technology: The company continues to develop and refine its technology stack, incorporating AI, machine learning, and blockchain to improve delivery times, tracking, and operational efficiencies.
3. Enhance Customer Experience: By continually improving its customer service and offering real-time tracking, Delhivery plans to offer a more transparent and reliable logistics experience for businesses and consumers.
4. Sustainability: Delhivery is committed to reducing its carbon footprint by adopting green technologies and focusing on eco-friendly solutions for its supply chain operations.
5. Global Expansion: While Delhivery has already expanded its footprint outside India, the company plans to grow its international presence in logistics and freight services​..

Business and Revenue Model of Delhivery

Delhivery operates on a technology-driven, asset-light business model that offers a wide array of logistics services. The company provides solutions across various segments, including:

1. E-commerce Fulfillment: Delhivery provides last-mile delivery solutions for e-commerce players, utilizing a mix of third-party vehicles and its fleet. The company charges based on volume and weight for each shipment.

2. Warehousing and Fulfillment Services: Delhivery operates a significant network of fulfillment centers and warehouses, providing storage, packaging, and order management services to clients across various industries. This service is typically based on storage fees, order fulfillment charges, and pick/pack services.

3. Freight and Supply Chain Services: The company offers end-to-end logistics solutions, including freight forwarding, transportation, and bulk shipment handling. Revenue is generated by charging customers based on the type and volume of goods moved.

4. Cross-border Services: Delhivery has expanded its operations beyond India, offering international logistics and freight forwarding services, which contribute to a portion of its revenue.

5. Value-added Services: These include reverse logistics, return management, and other customized solutions, charged as per the client’s requirements.

Fundings and Investors

Delhivery has raised substantial funds from multiple rounds of financing, enabling it to expand its capabilities and infrastructure. Some key milestones include:

1. Early Rounds (2012-2015): Delhivery raised initial capital from angel investors and venture capital firms like Times Internet and SAIF Partners to build its early infrastructure.

2. Series C (2016): The company raised $30 million in Series C funding from Multiples Alternate Asset Management and Carlyle Group.

3. Series D (2018): Delhivery raised another $413 million in Series D, led by SoftBank Vision Fund and Tiger Global, marking a significant milestone in its growth trajectory.

4. Series E (2019): Delhivery secured an additional $61 million in Series E funding, led by Steadview Capital, Tiger Global, and other investors.

5. Series F & IPO (2021): Delhivery raised $150 million in its Series F funding round, shortly before going public. The IPO, which launched in May 2022, raised ₹5,235 crore (approximately $700 million), making it one of the most significant logistics IPOs in India.

Shareholding & Growth of Delhivery

As of the latest updates, Delhivery has seen significant growth since its founding in 2011. The company went public with its IPO in May 2022, and its stock has been actively traded on the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

1. Shareholding Breakdown:

   • SoftBank Vision Fund remains one of the largest shareholders in Delhivery, owning a significant portion of the company, following a series of funding rounds.
   • Tiger Global and Carlyle Group also have substantial stakes in Delhivery.
   • Other investors include Steadview Capital, Multiples Alternate Asset Management, and Bessemer Venture Partners.
   • Following the IPO, public shareholders and institutional investors hold a combined significant share of the company.

2. Growth:
   Delhivery has expanded from a small startup to one of the largest logistics companies in India. The company currently operates in over 18,000 pin codes across India and has made significant strides in global markets as well. It has expanded its network of warehouses, distribution centers, and fulfillment hubs to support its diverse customer base, including giants like Flipkart, Amazon, and Swiggy.

   The 2022 IPO marked a major milestone, with Delhivery becoming one of the top logistics players in the Indian stock market. The company's annual revenue growth continues to demonstrate its robust business model and expansion in the logistics space, making it a significant player in the sector.

Revenue Model

Delhivery’s revenue is primarily generated through:

1. E-commerce Fulfillment: Revenue from delivering goods for online retailers, which includes last-mile delivery, freight forwarding, and returns management.
2. Warehousing & Storage: The company charges businesses for storage, inventory management, and order fulfillment services.
3. Freight & Supply Chain Solutions: Revenue is earned from logistics management for large-scale shipments, including B2B transportation, supply chain consulting, and freight forwarding.
4. Technology Services: Delhivery offers customized tech-enabled solutions for its clients to track deliveries, manage inventory, and streamline supply chain operations.

The company has also diversified into international logistics, where it provides cross-border freight and supply chain solutions.

Competitors of Delhivery

Delhivery operates in a highly competitive logistics market, with several key players competing for market share in the e-commerce and supply chain sectors:

1. Blue Dart: A subsidiary of DHL, Blue Dart is one of the largest express parcel service providers in India. They specialize in domestic and international courier services, with a focus on air logistics.

2. XpressBees: A fast-growing logistics company catering mainly to e-commerce companies. XpressBees focuses on last-mile delivery, warehousing, and returns management.

3. Ekart Logistics: The logistics arm of Flipkart, Ekart is one of the largest players in the Indian e-commerce logistics space, providing both warehousing and delivery services.

4. DTDC: A leading courier company in India offering express delivery and freight forwarding services. They also have a significant presence in international shipping.

5. Gati: Another prominent player in the logistics industry, Gati provides domestic and international logistics services, including express distribution, supply chain solutions, and freight forwarding.

Delhivery's Future Plans

Delhivery has ambitious future plans aimed at expanding its capabilities and solidifying its leadership in the logistics and supply chain sector. Key focus areas include:

1. Expansion into New Markets: Delhivery aims to further expand its operations not only within India but also across international markets. The company is exploring opportunities to grow its presence in Southeast Asia, Middle East, and other regions to offer cross-border logistics solutions.

2. Technological Advancements: Delhivery plans to continue investing in cutting-edge technologies like AI, machine learning, and blockchain to optimize routes, reduce costs, and enhance customer experience. It is also exploring automation within its warehouses and fulfillment centers to improve operational efficiency.

3. Sustainability Initiatives: As part of its commitment to environmental sustainability, Delhivery is focusing on reducing its carbon footprint by transitioning to electric vehicles (EVs), solar-powered warehouses, and other eco-friendly initiatives.

4. Diversification of Services: The company plans to diversify its service offerings further by moving into B2B logistics, supply chain consulting, and cloud-based supply chain management software. These moves will help the company cater to a broader range of industries.

5. Strategic Acquisitions: Delhivery is actively looking for potential acquisitions to strengthen its service portfolio, improve last-mile delivery capabilities, and enhance technology infrastructure.

Frequently Asked Questions (FAQ)

1. What services does Delhivery provide? Delhivery offers a range of services including last-mile delivery, warehousing, freight forwarding, reverse logistics, cross-border logistics, and supply chain solutions tailored to e-commerce businesses and other industries.

2. How can I track my order with Delhivery? Customers can track their shipments in real-time through Delhivery's tracking portal on their official website or mobile app, using the unique tracking ID provided at the time of shipment.

3. Does Delhivery serve international customers? Yes, Delhivery provides international logistics services, including cross-border shipments, freight forwarding, and customs clearance.

4. How does Delhivery ensure the safety of packages during transit? Delhivery uses advanced tracking systems, real-time monitoring, and a dedicated quality control team to ensure packages are safely handled throughout the shipping process. The company also partners with leading insurers to offer coverage against damages or loss during transit.

5. What are Delhivery's main competitors? Some of Delhivery’s main competitors include Blue Dart, XpressBees, DTDC, Ekart Logistics, and Gati, which also provide logistics and supply chain services, especially for e-commerce.

6. How can I become a Delhivery partner? Businesses interested in partnering with Delhivery for logistics services can visit their official website, where they can register and submit details for customized solutions for warehousing, fulfillment, or delivery services.

Latest News

Delhivery, one of India's largest logistics companies, has recently reported positive growth in its operations for Q3 FY24. The company's revenue surged by 20% year-on-year (YoY), reaching INR 2,194 crore, and marked its first-ever profit since its public listing, with a Profit After Tax (PAT) of INR 11.7 crore. This turnaround highlights the strength of Delhivery's business model, especially in express parcel shipments, which grew by 18% YoY, alongside a 37% increase in part truckload freight volumes.

The company also reported significant improvements in EBITDA, turning from a loss to a profit of INR 109 crore, demonstrating the growing operational efficiency. Delhivery's stock price reached a 52-week high, with an increase of 22.99% year-to-date​Business News India 

For more details, you can check the full coverage of Delhivery's latest results on Business Standard and NewsBytes.