Indian logistics company Delhivery has attracted a second high-profile investor prior to its anticipated IPO in two quarters. It is Lee Fixels Addition.
The Gurgaon-headquartered firm has disclosed in a regulatory filing that Addition has invested $76.4 million in the startup. According to market intelligence firm Tofler, the new investment is part a Series I round. Delhivery has so far only disclosed Additions investments.
This 10-year-old startup started its life as a delivery company for food. However, it has now expanded to offer a complete suite of logistics services in more than 2,300 Indian cities and more that 17,500 zip codes. It is one of a few startups that aims to digitize the supply and demand system of the logistics industry through a freight exchange platform.
This new investment comes just months after a FedEx subsidiary invested $100 million in Delhivery. The startup also closed a $277million financing round. The startup stated earlier this year that it would file for an IPO in the next six to nine month.
Delhivery is India's largest logistics company. It connects consignors, agents and truckers to offer road transport solutions. According to the startup, the platform reduces the need for brokers and makes some of its assets, such as trucking, the most preferred mode of transport in Delhi, more efficient. It also ensures that operations are available 24 hours a day.
Digitalization is essential to fix the inefficiencies in India's logistics industry, which has long hampered the country's economy. In a report published by Bernstein last month, Indian logistics market analysts wrote that poor planning and forecasting of demand, supply and costs can lead to theft, damages, and delays.
According to Delhivery's website, it claims it has shipped over 1 billion orders. It also works with the top Indian e-commerce companies. To save time, couriers are given an area of 2 km for the final leg of delivery. This allows them to do multiple deliveries per day.
According to Bernstein analysts, India's logistics market TAM (total addressable markets) is more than $200 billion. In late 2013, the startup stated that it planned to invest more than $40 million in the next two years to expand its fleet and meet growing orders.
Lee Fixel is a well-known name in India's startup ecosystem and one of the first global investors to recognize India's potential. His investment in Flipkart through Tiger Global during the past decade has accelerated the growth of the Indian startup ecosystem.
Addition, a venture company founded by Fixel last year, is already paying attention to India. It has also backed Public Social Network and Neobank Jupiter.
Fixel continues to write checks for Indian startups. According to two sources, Fixel is currently in discussions to support Third Wave, a Bangalore-based coffee chain.
