Delhivery, India’s largest independent e-commerce logistics startup, raised $ 277 million in what is expected to be the final round of funding before the company filed for an IPO later this year.
In a filing for approval, the Gurgaon-based startup announced that it had raised $ 277 million in a round led by Boston-based investment firm Fidelity. Singapore’s sovereign wealth fund GIC, Abu Dhabi’s Chimera and British Baillie Gifford also took part in the new round, the name of which the startup did not specify.
The new round valued the 10-year-old startup at around $ 3 billion. Delhivery – whose investors include the SoftBank Vision Fund, Tiger Global Management, Times Internet, the Carlyle Group and Steadview Capital – has raised around $ 1.23 billion to date. The startup did not comment on Sunday.
Delhivery began life as a grocery delivery company, but has since shifted to a full range of logistics services in over 2,300 Indian cities and more than 17,500 zip codes.
It is one of a handful of startups trying to digitize the demand and supply system of the logistics market via a freight exchange platform.
The platform connects shippers, agents and truckers who offer road transport solutions. The startup says the platform is reducing the role of brokers, making some of their assets like trucking – the most popular form of transportation for Delhivery – more efficient, and ensuring operations around the clock.
This digitization is crucial to address the inefficiencies in the Indian logistics industry that have long held the economy back. Poor planning and forecasting of supply and demand increases transportation costs, theft, damage and delays, Bernstein analysts wrote in a report on the Indian logistics market last month.
Delhivery, which claims to have shipped over 1 billion orders, works with “all of India’s largest e-commerce and leading companies,” according to its website, where the startup has worked with over 10,000 customers. For the final stage of the delivery, the couriers are allocated an area that never exceeds 2 km², so that they can make several delivery runs per day in order to save time.
According to Bernstein analysts, the TAM (Total Addressable Market) of the Indian logistics market amounts to over 200 billion US dollars.
The startup announced late last year that it plans to invest over $ 40 million in two years to expand and grow its fleet size to meet growing demand for orders as more people online in the pandemic shop.