SoftBank-backed logistics unicorn Delhivery, despite the disruptions brought about by the pandemic, is eyeing to close the current fiscal year with profitable revenue.
The company, based on its present run-rate, is anticipating to close the current financial year with INR 3,700-4,000 crore in revenue, compared to INR 2,800 crore last year. This would put the company ahead of its competitors like FedEx, Ecom Express, Gati and XpressBees.
Further, with this run rate, they would also overcome the market leader Blue Dart which recorded a revenue of over INR 3,166 crore at the end of March 2020, seeing a flat year compared to previous year.
Considering the same, the company’s joint MD & Chief business officer Sandeep Barasia while speaking to the media said that Delhivery would emerge as the largest supply chain company in India by revenue.
This comes at a time when the company said it’s “ready” for an initial public offering (IPO) in the next 12 months and is considering both Indian and overseas markets for it.
“We are trying to create the most tech-savvy supply chain company. We are now India’s largest supply chain company. From a run-rate basis, our revenue will make us the largest supply chain company in India,” Barasia said.
He further added that Delhivery would have sucessfully reached the break-even point, had it not seen the near washout months of April and May this fiscal.
He informed that its core e-commerce business has been “extremely profitable”. But Delhivery is making investments in new businesses as it eyes a wider play in the business-to-business (B2B) segment, which has been growing at 100%.
The company in the current festive season is clocking 1.7-1.8 million daily shipments. It works across sectors like consumer electronics, fashion, FMCG and select industrial sectors like auto.
In the previous fiscal year, Delhivery said it recorded 27-27.5 crore e-commerce shipments. “Our focus is to continue growing our e-commerce business as the market grows, but the real thrust is making sure our B2B business grows much faster as the opportunity is so large,” said Barasia.
He adds, “Over 12-24 months, our objective is to have an equal contribution from e-commerce and B2B businesses”. Currently, e-commerce business is 63-65% of its total business.
He added that the company is looking at acquisitions to aid its B2B business. “There is some inorganic opportunity possible for us in the B2B space”, he said.
Speaking on its IPO preparations, Barasia said that the company was ready for one based on the current set of regulations even though the industry expects that the government and regulators like SEBI will announce some changes.
“If we are going to list in 12 months, we will list within the realms of whatever the regulations hold true at that point of time. As of now, we are preparing to list based on the current regulatory framework,” added Barasia.
He said the company has been doing its “internal homework”, working with audit firms for preparedness for an IPO. It is yet to appoint a banker for the process, but the same will be decided by its board closer to the process.
While the company is showing a phenomenal revenue growth even during these times, more flexibility and agility to the new changing times will be the key for the industry to keep moving forward in times when consumer behaviour is rapidly changing and Price competition in the e-commerce delivery space has been very intense.