Delhivery has clarified that the news regarding its potential acquisition of All Cargo Group’s Gati is factually incorrect. In a filing with the BSE, Delhivery stated that there have been no discussions whatsoever regarding this matter.
Sometime back, reports were floating about Delhivery looking at fresh growth opportunities, and that acquisitions may be the inorganic route they will take to scale up. In that direction, the reports said that Tiger Global and SoftBank backed Delhivery will be acquiring Gati, and that both the companies have been in negotiating stage for a month.
Acknowledging its impressive hold on air cargo, the reports said that the acquisition may be a strategic move for Delhivery to strengthen its position in the trucking business, leveraging Gati’s expertise in surface logistics. However, both the companies did not provide any details regarding the size or terms of the potential deal.
“As a part of our policy, we do not comment on any speculation. Gati is an important and integral part of Allcargo Group. We remain focused on strengthening the group’s position in the fast-growing express and contract logistics space,” said a statement from Gati.
It the reports turn from suspicion into certainty, it would mark the largest acquisition for Delhivery thus far, after it acquired Spoton Logistics, Algorhythm Tech, and stakes in Vinculum.
Despite crossing Rs 7,200 crore in revenue during FY23, Delhivery experienced a mere 5% growth. Its losses remained stable at Rs 1,007 crore for the fiscal year. In Q4 of FY23, Delhivery generated Rs 1,860 crore in revenue, with losses decreasing by 18.9% to Rs 158.6 crore during the same period.