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Delhivery is worth $1.5 billion; SoftBank, Carlyle, others load up $400 million in new funding

By Asmita Dey

Encouraged by Delhivery s near ten-fold growth in about four years, and the e-retailing boom in India, investors led by SoftBank have pumped in close to $400 million into the third party logistics player.

The infusion, according to data sourced from business signals platform, will value the firm at $1.5 billion. US-based investment firm Carlyle Group has also participated in this round of funding.

Transportation, fulfillment services and technology are what Delhivery offers across 14,000 of India s 40,000 pin codes. The company delivers a million parcels a day up from an estimated 1.2 lakh parcels a day in June 2015. Customers include large e-tailers, niche e-tailers, online merchants and enterprises (omnichannel services to large brands).

Revenues haven t quite kept pace with volume metrics, however, having risen by about five times since June 2015 to `1,019.37 crores in the year to March 2018. Moreover, losses were high at close to `700 crore in 2017-18 partly because the business has needed investments.

Nonetheless, analysts say the business model is scalable given the big jump in internet shoppers and the exponential growth in e-retailing. Delhivery has added warehousing space at a rapid pace to 6 million sq ft, again a ten-fold jump in four years. Delhivery competes with players such ECom Express and Rivigo. Much of the market, analysts point out, is captive with Flipkart and Amazon which have eKart and Amazon Transportation Services respectively. While Japan-based SoftBank is investing around $350 million in the Gurgaon-based company, Carlyle is infusing around $45 million in the firm, the documents, accessed by FE, showed.