Delivery & Logistics Firm Delhivery raises $76.4 million led by Startup Investor Lee Fixel
Fixel previously worked for Tiger Global, a New York-based hedge fund, for 13 years, from 2006 to 2019. He was in charge of Tiger Global's $3.3 billion investment in Indian e-commerce giant Flipkart. In September 2019, Lee Fixel launched his own investment firm, Addition LLC, and has made investments in news aggregation startup Inshorts and its social network platform, Public.
The latest round of funding comes months after a FedEx division invested $100 million in Delhivery, and the startup completed a subsequent $277 million round. As part of the transaction, FedEx Express also enters into a long-term commercial partnership with Delhivery. Although FedEx Express will focus on international export and import services to and from India, Delhivery will promote FedEx Express's international products and services in India and handle pick-up and delivery operations within the country.
Earlier this year, the logistics unicorn announced plans to prepare for an IPO within the next six to nine months. The aforementioned round was expected to be Delhivery's final fundraising round before filing its draught red herring prospectus (DRHP) with the Indian market regulator, a mandatory procedure for any company seeking to go public in India.
Spoton Logistics, headquartered in Bengaluru, was recently acquired by Delhi for an undisclosed sum. Spoton has a pan-India network of nearly 300 locations and approximately 22,000 pin codes.
Delhivery, founded in 2011 by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati, and Suraj Saharan, provides a wide range of logistics services, including express parcel delivery, LTL and FTL freight, reverse logistics, cross-border, B2B and B2C warehousing centres, and end-to-end supply chain service.
Delhivery competes directly with Xpressbees, another logistical firm backed by Alibaba Group, which secured $110 million in November 2020, as well as Ecom Express, which is backed by Partners Group and Warburg Pincus.
According to research reports, the TAM (total addressable market) of the Indian logistics industry is more than $200 billion, growing at a CAGR of 10.5 percent, with systematised logistics accounting for only about 15% of the market.