Delhivery’s PE investors are likely to partially exit the company post the IPO.

E-logistics startup Delhivery plans for 350-million IPO soonImage source: Facebook
Atom Fund Raising Saturday, June 30, 2018 - 10:03

Gurugram-based last-mile delivery player Delhivery is set to create records by making an Initial Public Offer (IPO) over the next few months. Delhivery is a logistics firm that uses technology and, in that sense,, it would qualify to be called an e-logistics company and would be first of its kind in tapping public funds with very few precedents to go by.

With an impressive and long list of investors having already taken position in the venture, Delhivery may not find it difficult to raise required funds through the IPO.

In terms of valuation, the logistics startup would want it to be pegged at around $2 billion-2.8 billion and the issue size is expected to be $350 million (Rs 2,500 crore).

The managers to the issue appointed by Delhivery include Goldman Sachs, Morgan Stanley, Citigroup and Kotak Bank. It is also understood that the issue will see both primary and secondary stocks being offered. Post the issue, some of the PE players may offload their investments. None of these details, however, have been officially confirmed by any of the companies involved.

Till date, Delhivery has raised around $215 million in different rounds of funding from VCs: theCarlyle Group and Tiger Global, Fosun Group of China, Nexus Venture Partners, Multiples Alternate Asset Management and Times Internet. The last known valuation of the company stood at $700 million.

When it comes to the operations and financial performance, Delhivery covers 1,200 cities and towns in India which include 12,000 PIN codes and having commenced operations in 2011, it had created warehousing facility of over 1,000,000 square feet by 2017.   

The Indian logistics business is being projected to register decent growth figures and reach $215 billion by 2020.

Delhivery’s IPO and another startup Nazara Games, which is also poised to tap public funds shortly may set the trend for other startups to follow and change the trend since even the top startups like Flipkart had contemplated but not muster the courage to go public.

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