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When the brain hits you right, you think of wonderful ideas, one of the brain hitting ideas in the history of startups in India is Delhivery. Proving themselves since 2011 as a great startup, this company is now like a backbone for the logistics industry.
The pillar of the Indian e-commerce industry is somehow logistics, which Delhivery is leading precisely to being a huge fundraiser for the industry. It offers a full suite of services such as last-mile delivery, third-party and transit warehousing, reverse logistics, payment collection, vendor-to-warehouse, and vendor-to-customer shipping, and more.
Delhivery became a Unicorn in 2019 when it raised $413 million in a Series F round led by SoftBank Vision Fund, Carlyle Group and Fosun International. It was then valued at $1.5 billion. Currently, Delhivery is valued over $3 Bn.
Read this article to know about Delhivery Company Profile, Founders, Business Model, How it Started, Growth, Competitors, Funding and Investors.
Delhivery - Company Highlights
| Startup Name | Delhivery |
|---|---|
| Headquarter | Gurgaon, India |
| Sector | Logistics |
| Founders | Kapil Bharati, Mohit Tandon, Sahil Barua, Suraj Saharan, Bhavesh Manglani |
| Founded | 2011 |
| Parent Organization | Delhivery Pvt Ltd |
| Total Funding | $1.3B |
| Revenue | INR 2800 crore (FY2020) |
| Valuation | ~ $3 billion |
| Website | delhivery.com |
Delhivery - About and How it Works
Delhivery - Founders/Owners and Team
Delhivery - Partnered with Volvo
Delhivery - Target Market Size
How was Delhivery Started?
Delhivery - Business Model and Revenue Model
Delhivery - Growth and Revenue
Delhivery - Funding and Investors
Delhivery - Name, Tagline, Logo
Delhivery - Competitors
Delhivery - Future Plans
Delhivery - FAQs
Delhivery - About and How it Works
Delhivery offers a full suite of services such as last-mile delivery, third-party and transit warehousing, reverse logistics, payment collection, vendor-to-warehouse, and vendor-to-customer shipping, and more. The company is backed by Times Internet Ltd, which had acquired a minority stake in the firm in June last year.
Having three responsibilities on shoulders that are fulfillment, omni-channel, and data services, the company’s focus is to deliver the best service without any waste chances of solving customer’s problem.
It provides products and services intending to build trust and improve the lives of consumers, small businesses, enterprises, and their growing team of employees and partners. They are disrupting India’s logistics industry through their proprietary network design, infrastructure, partnerships, and engineering and technology capabilities.
Delhivery brings unparalleled cost efficiency and pan-India reach to the businesses of over 10,000 customers. It is driven by its mission to shrink time and distance, making the world a smaller place for its customers and over a billion consumers they serve. A very normal company that did a very abnormal business, gaining a beautiful profit and becoming a huge success, It is the new phase of delivering items.
They aim to compete as India’s largest and most profitable fulfillment company for e-commerce. Having the 3 categories of customers for their company, Delhivery is constantly aiming to provide them the good quality products with better improvement every day and with trust.
Vidhi Punamiya
Delhivery - Founders/Owners and Team
Delhivery was started by a bunch of engineers including Bhavesh Manglani, Kapil Bharati, Mohit Tandon, Sahil Barua, and Suraj Saharan.
Sahil, Suraj, and Mohit were day job men having a great aspiration to start their own venture, but they knew that it takes a lot to have a successful startup. All three men worked in Bain & Co in 2008 but two of them Suraj and Mohit worked at the management consulting arm of the company.
“We didn’t have the faintest idea what we were going to do. We decided to quit on one fact, we realized there is only so much you can learn in consulting, and grow,” says Sahil.
They took a huge furlough together for 6 months that is when they decided to give up their jobs and started working for their dreams.
Bhavesh Mangalin (COO) is the co-founder of Delhivery. He successfully has 3 years of experience at telecom companies like Idea cellular and reliance communication and 18 months of misc startups,
Kapil Bharti (CTO) graduated from the Indian Institute of Technology (Delhi), joined the two genius minds later to complete their dreams as well as to make all of them grow rich in their business.
Besides these great minds, some of the important sectors are managed by another core team of three members-
- Aveek Nandi (Director, product design and strategy)
- Deepak Dhyani (Vice President at Delhivery)
- Sandeep Barasia (Joint MD at Delhivery).
This wonderful startup company started with five employees and now it’s standing on its own as an organization employing more than 17,000 people, with a presence in more than 13+ countries.
Ashwini
Delhivery - Partners with Volvo
Recently (August 2020), Delhivery partnered with Volvo to add tractor trailers into its express network.
"This is the first major deployment of tractor trailers in express trucking which is a significant step for Delhivery towards getting ready for the future and towards expanding our network and building our leadership position in this market further," Says Sahil Barua, Co-Founder, Delhivery
Delhivery - Target Market Size
The country's logistics industry which is worth around USD 160 billion is likely to touch USD 215 billion in the next two years with the implementation of GST.
And here comes the biggest reach of Delhivery that is, they have approximately 1400 pin codes on their list and over 19,990 sq ft of warehouse space in Delhi as well as in Bangalore. Delivery has a lot of partners with whom they partnered to increase their product reach and to cope up with those partners, the company also offers third party warehousing and transit warehousing to its partners.
To increase the quality of the products delivered by Delhivery, Suvayu Ali, (Data Scientist at Delhivery) kept a special check on the market of these technical matters with an algorithm which is one of the projects that a team of data scientists at Delhivery, led by former entrepreneur and Facebook data scientist Santanu Bhattacharya is working on.
The very special achievement of Delhivery is that they are now in 13+ cities already which made this business easier to raise more funds for the company. The target of this company is to have branches in over 250+ cities by the end of this fiscal year.
Piyush Mishra
How was Delhivery Started?
It was approximately half-past at night when Suraj and Sahil ordered food from a nearby restaurant in Gurgaon. When they had the delivery man standing in front of their door, they got chatty with the delivery person. And they both decided to talk to the manager of the store, soon they were at the restaurant, talking to the owner. The owner explained his problem that why it happened, the fact is Sahil and Suraj knew the solution and that is when Delhivery started.
Sahil narrated the exact conversation between him and the owner of the restaurant - “It was 11.30 at night, I still remember, we took our bikes and went to meet the owner, Anuj Bajaj, who was surprisingly still there. He said he was shutting the restaurant down. He was really happy we had come because he wanted his staff to relocate somewhere. We said bring it on, we’ll hire everybody."
Vidhi Punamiya
Delhivery - Business Model and Revenue Model
Delhivery has become India’s leading supply chain services company. It is one of the India's largest B2B & C2C Logistic Courier Service Provider. Delhivery charges Lowest/economical shipping rates for providing its service. There are no No Setup Fee or Subscription Charges!
The services offered by Delhivery can be divided into 3 primary departments
- Warehousing - Flexible warehousing across 40+ cities in India
- Transportation - Largest pan-India reach across 19000+ pin codes and 2500+ cities
- Commerce - Ready integration with Shopify, WooCommerce, Magento & Opencart.
Delhivery - Growth and Revenue
The company initially was a small business of only 5 members in total for all their work from accounts to product service to delivery hookups, but as the time passed this company hired more than 15,000 people as their deliverymen, accounts keeper and to keep their customers satisfied if there is any issue in the product or same.
The company claims to have a turnover of INR 2800 crore for FY2020 and have plans to reach INR 6000 - INR 7000 crore in the next two years
As of 2020, Delhivery delivers around 1.5 million order/day in over 17,500 pin codes in India across 2,300 towns and cities. It is mainly because of its network of nearly 7,000 drivers and over 5,000 trucks. Delhivery is also building some of the Country's Largest Trucking Terminals at key locations in Delhi, Mumbai, Bangalore, Hyderabad, Kolkata and Chennai.
The company culture aims at making every individual experience working in trenches as a delivery boy, for at least twelve hours a week, to promote teamwork and efficiency of the employees.
In an interview, Sahil Barua quoted some wonderful lines for his employees “After every 20 minutes I get up and go talk to a team member. Thanks to this, I know everyone in our office by their first name. We have that kind of openness in the office where people can tell us what they think. That is what keeps us going”.
Shubham Kumar
Delhivery - Funding and Investors
Delhivery has raised a total of $934.5M in funding over 9 rounds. After the last funding from a Secondary Market round that came from CPPIB, the Canadian pension fund, where the company raised $115 million on Sep 9, 2019, the Indian logistics giant has reportedly raised $277 million on May 30, 2021. This latest round of primary infusion is allegedly the first of such investments that the firm raised in 20 months.
Fidelity Investments, the American multinational financial services corporation headquartered in Boston, was the company to lead the investment round pumping in $126 million. The Boston-based firm was followed by GIC (Gamnat Pte), which put in around $75.6 million. Chimera Investments and Pacific Horizon Trust were the next ones to join the round with $50 million and $25 million respectively.
Here is a list of all the funding rounds of Delhivery:
| Date | Stage | Amount | Investors |
|---|---|---|---|
| April 2012 | Series A | $1.5 million | Times Internet Limited |
| September 30, 2013 | Series B | $5 million | Nexus Venture Partners |
| September 8, 2014 | Series C | $35 million | Multiples Alternate Asset Management Private Limited |
| May 6, 2015 | Series D | $85 million | Tiger Global Management |
| March 23, 2017 | Series E | $100 million | Carlyle Group, Tiger Global, Fosun |
| May 22, 2017 | Series E | $30 million | Fosun International |
| March 24 2019 | Series F | $413 million | SoftBank Vision Fund, Carlyle Group, Fosun International |
| June 17, 2019 | Secondary Market | $150 million | Canada Pension Plan Investment Board |
| September 9, 2019 | Secondary Market | $115 million | Canada Pension Plan Investment Board |
| December 15, 2020 | Secondary Market | $25 million | Steadview Capital |
| May 30, 2021 | Series H | $277 million | Fidelity Investments |
| July 16, 2021 | - | $100 million | FedEx Express |
And as the company is doing great business, it is hope as well as a target for the coming years to reach Rs 220 crores.
Varad Kitey
Delhivery - Name, Tagline, Logo
True to its tagline- 'Changing the world, one shipment at a time', Delhivery is changing the logistics market with a new strategy every day.
Delhivery - Competitors
As Delhivery is a logistics’ grown company, it is obvious to have a great competition in the market some of the very state rivals are Ecom Express, DotZot, FSC (Future Supply Chain), BlackBuck, Delex, Delivery.com, etc.
It is because of the competition in the market that customers are getting different choices all of the nearly equal qualities.
Rishabh Rathi
Delhivery - Future Plans
As of June 2021, Delhivery is all set to launch its first IPO in 2022. Also, Delhivery will continue to aggressively invest in building trucking infrastructure and is planning to invest up to Rs 300 crore in next 24 months to expand its fleet size.
The company claims to have a turnover of Rs 2800 crore for FY2020 and have plans to reach Rs 6000 - Rs 7000 crore in next two years.
“Two years ago, when we were trying to go public, it so happened that the timing of our decision to go public coincided with the Indian general elections, and it was probably not the best time to go public because a lot of focus was going to be on elections…plus, there was already a private capital pool that was available, so we basically, pushed it back. Our view is that in the next 12-18 months, we see us going back into the public market," Says Sandeep Barasia, Chief Business Officer, Delhivery
Delhivery - FAQs
Who are the Founders/Owners of Delhivery?
Delhivery was founded by Bhavesh Manglani, Kapil Bharati, Mohit Tandon, Sahil Barua, and Suraj Saharan.
Who is the Parent Company of Delhivery?
Delhivery Pvt Ltd
What is Delhivery?
Delhivery offers a full suite of services such as last-mile delivery, third-party and transit warehousing, reverse logistics, payment collection, vendor-to-warehouse, and vendor-to-customer shipping, and more
Who is the CEO of Delhivery?
Sahil Barua is the Founder and CEO of Delhivery
Who are the Top Competitors of Delhivery?
As Delhivery is a logistics’ grown company, it is obvious to have a great competition in the market some of the very state rivals are Ecom Express, DotZot, FSC (Future Supply Chain), BlackBuck, Delex, Delivery.com, etc.
Author: Rishabh Rathi
Source : https://startuptalky.com/delhivery-success-story/
Date : 2021-07-16T07:44:00.000Z