12 May 2020
A Rundown on Delhivery, Revamped Unicorn

    Delhivery, a Delhi-based logistics firm, was founded in May 2011. This start-up was initiated and co-founded by 3 friends Sahil Barua, Suraj Saharan, and Mohit Tandon. Earlier to this start-up these three worked together in Bain & Company. However, Bhavesh Manglani and Kapil Bharati joined the team in the later years. With Sahil Barua being CEO, this company is currently sustaining nearly 8,000 partner centers.

    Starting its journey as a hyperlocal express delivery service, Delhivery used to provide service for offline stores, delivering food and flowers in the city of Gurgaon. Those were the times where the e-commerce segment and online retailing was expanding briskly in India and global investors began showing interest in the industry. Delhivery utilized this in an efficient manner and now, it is recognized as a Unicorn with a recent Softbank funding of $413 million.

    With Shipping being a major service, this company also offers omnichannel services like supply chain services and technological services for anyone who needs to go online. Starting as an end-to-end shipping service in Delhi NCR, Delhivery presently comprises over 180 cities and towns. It is preparing to make this count reach 260 by the edge of this year.

    As of now, this Gurugram based start-up has 40,000+ employees, 14,000+ vehicles, 8000+ partner centers, 2,500+ delivery centers, 75 fulfillment centers, 70 hubs, and 24 automated sort centers. Summarising everything, the current capacity of Delhivery stands with a processing capacity of more than 1 million parcels per day. As of FY 2019, the company’s revenue hits up to Rs. 17 B.

       “It’s (Delhivery) got very strong valuations based on its growth rate, and its revenue growth has been at par with that of the e-commerce sector,” said Satyan Gajwani, chief executive, Times Internet.

    As a part of the company’s achievements, Delhivery has received three honorable awards. The first award is “Young Turk Start-up of the Year 2016”, the second one is “Mahindra Transport Excellence Award 2018” and the third and latest award is “ET Start-up of the year Award 2019”.

    Delhivery explained that it is going to scale up its activity in India by using new-age delivery privileges, while Amazon and Zomato have already implemented such things. As a part of their vision, EVs and Drones have been the plans for the afterward phase of the company’s growth. The company is still waiting for the Government’s statements towards its appeal of drone shipment operations.

    The company's loss for FY 19 adds to Rs 1,772 crore, from Rs 692 crore loss it claimed in FY18. The firm acquired almost double its “other costs” at Rs 2,995 crore for FY 2019, related to Rs. 1,421 crore in FY18. That made the total expenses rise to Rs 3,466 crore, virtually double that of Rs 1,765 crore expenses provoked in the previous year.

    As a chunk of COVID-19 measures, Delhivery granted paid leaves to all its workers. As a practice of social distancing, the company has implemented UPI interfaces and pre-paid orders for cash-on-delivery. On the other hand, every team has been strictly advised to undergo daily health checks and obligatory usage of masks and sanitizers along with providing guidance and the right information to maintain personal hygiene.