Delhivery plans IPO by March 2022, to raise $400-$500 mn

Logistics and supply chain services company Delhivery is planning to come out with its initial public offer (IPO) between December 2021 and March 2022.

Since it is an Indian company and has a substantial business here, Delhivery will list locally. It is unlikely to postpone the IPO, unless there is a third wave of COVID-19 pandemic which affects market sentiment, Delhivery co-founder and CEO Sahil Barua said.

"The company is still working out details of the issue, including its size. However, given that we already have substantial cash on our balance sheet, we expect it to be a primary issue in the $400-500 million range," Barua told Economic Times.

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Last week, the company said it raised $275 million in Series H round, led by Boston-headquartered investment firm Fidelity Management and Research Company. The company was valued at over $3 billion.

Delhivery plans to use the IPO proceeds to expand its cross-border and technology verticals. "We have a tonne of cash, which means we can invest in working capital, assets that we need and in our technology," Delhivery MD and Chief Business Officer Sandeep Barasia said.

The company also wants to be more aggressive when it comes to acquisitions. "We are going to be more acquisitive than we have been in the past. It is because there is a mismatch on valuation. We are not going to buy anything for $100 million," Barua was quoted as saying.

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