Image Credit:twitter.com/delhivery , forbesindia.com
The Indian supply chain and logistics company, Delhivery is expected to go public by March 2022. The information was revealed by Sahil Barua, co-founder and the CEO of the company, in an interview with The Economic Times. Delhivery, which raised $277 million in the latest round of fundraising, is currently valued at $3 billion.
Delhivery going for an Initial Public Offering (IPO) is a part of a wider trend witnessed in India where many of the country’s homegrown tech companies are trying to take advantage of the optimistic stock markets. Other notable examples include Paytm and Zomato both of which are also expected to get listed by the next year.
According to Sahil Barua, unless the third wave of Covid-19 infections hit the country and affects the markets, his company is on track to launch an IPO by March 2022. “Since we are an Indian company and have a substantial part of our business here, we will list locally,” he added.
Barua expects the IPO issue to be between $400- $500 million. He also informed that Delhivery has substantial cash of over $550 million on its balance sheet which would help the company get a better valuation. The company will use the capital raised from the IPO to enhance its cross border services and technological offerings to small businessmen. It has already built a technology centre in the American city of Seattle.
Earlier in January this year, the company had made a sub-committee from amongst its board members to decide on IPO and mergers & acquisitions.
Delhivery was founded as a delivery company in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati. It has received backing from a host of investors including Soft Bank Vision Fund, Tiger Global, Carlyle Group, Nexus Venture Partners among others. Mohit and Bhavesh had left the company in early 2021.