Delhivery - Central News Hub

Delhivery Cuts Quarterly Loss by More Than Half as Revenue Surges

The logistics unicorn went public in May 2022…reports Asian Lite News

Logistics services provider Delhivery’s net loss in the September quarter of the current financial year was more than halved to Rs 103 crore, while revenue increased by 8 per cent to Rs 1,942 crore, despite higher inflation and fund crunch, the company announced on Saturday.

The company reported a loss of Rs 254 crore and revenue of Rs 1,796 crore in the same quarter of the previous year.

“We are pleased with H1 operating and financial performance, in particular the reduction in receivables by around 12 days, ahead of our Q1 guidance,” Sahil Barua, MD & CEO of Delhivery, said in a statement.

Express Parcel shipment volumes grew 12 per cent (year-on-year) to 181 million in Q1 FY24 from 161 million in Q2 FY23, despite last year’s volume getting a boost from the early part of the festive season sales falling in Q2.

Similarly, revenue from Express Parcel services grew 8 per cent (year-on-year) to Rs 1,210 crore in Q2 FY24 from Rs 1,125 crore in Q2FY23.

The logistics firm’s shares closed at Rs 402.25 per share on the Bombay Stock Exchange (BSE) on November 3, 17 per cent lower than the IPO price of Rs 487 per share.

The logistics unicorn went public in May 2022.

Moreover, the company announced that effective January 15, 2024, Suraj Saharan, co-founder of Delhivery, would take over as the Chief People Officer and Varun Bakshi would take over as the Head of Business Development, Part Truckload Freight business effective January 9 next year.

ALSO READ-SBI Sets Aside Funds for Employee Wage Hikes

Delhivery makes key investment in Vinculum

Through this investment, the two companies will build a complete integrated stack to address the entire range of post-purchase needs of a D2C brand….reports Asian Lite News

Fully-integrated logistics services provider Delhivery on Saturday announced to make a strategic investment in Vinculum, a global software leader enabling omnichannel retailing, for an undisclosed sum to boost its direct-to-consumer offerings.

The investment, said the company, is the first part of a potential two-stage deal that provides Delhivery the option to further increase its shareholding in the company after six months.

“A strategic partnership with Vinculum strengthens Delhivery’s fulfillment solution to brands,” said Rajaganesh S, Head of Supply Chain Solutions at Delhivery.

Vinculum has scaled up into a leading SaaS omnichannel software company working with over 400 brands across grocery and FMCG, healthcare, beauty, cosmetics, fashion and jewellery in India, South East Asia and the Middle-East markets.

“We are delighted with the investment to be made by Delhivery in Vinculum. This lays the foundation for deep tech integration between both companies, tremendous collaboration opportunities, and immense business value for our customers,” said Venkat Nott, Founder and CEO of Vinculum Group.

Through this investment, the two companies will build a complete integrated stack to address the entire range of post-purchase needs of a D2C brand.

A deeper integration with Vinculum’s industry-leading Order Management System (OMS) will be a first-of-its-kind fully-integrated E2E offering, said Delhivery.

The investment move came as Delhivery reported Rs 1,860 crore in revenue in the quarter that ended March 31.

Adjusted EBITDA turned positive to Rs 6 crore in Q4, compared to Rs 67 crore loss in Q3.

“We were confident of continued improvement in the core transportation business and overall profitability at the end of last quarter and are happy to report we have delivered both in this quarter as planned,” said Sahil Barua, Managing Director and CEO, Delhivery.

ALSO READ: IBM to invest $100 mn to build a 100,000-qubit supercomputer