Delhivery Business Model, a logistics company in India, which took its steps as a small start-up and now considered to be among the best in its sector.
Running a start-up has never been an easy job, it requires hard-core determination, a will to go on, persistence and perseverance.
As their tag line suggests, “Changing the world, one shipment at a time”, it caters to the needs of small start-ups, individuals, companies, retailers, and more by delivering its services such as third-party & warehousing, reverse logistics, payment collection, last-mile delivery and more.
It is considered as the largest e-commerce logistics company in India today.
DELHIVERY BUSINESS MODEL: HOW IT ALL STARTED
The company was founded in 2011 by five engineers, Bhavesh Manglani, Kapil Bharati, Mohit Tandon, Sahil Barua, and Suraj Saharan.
Mohit Tandon, an IITian at Indian Institute of Technology, Kanpur, Sahil Barua who is an IIM graduate from Bangalore, and Suraj Saharan who is a Mechanical Engineer from IIT Bangalore worked together at Brain & Co in 2008.
Bhavesh Mangalin, the co-founder of Delhivery, is an experienced individual. He has previously worked with companies like the idea cellular, reliance communication, and other telecom companies.
Kapil Bharti has completed his graduation from the Indian Institute of Technology, Delhi, and he joined the company later to contribute his rich skills and help the company grow.
The logistics company is headquartered at Gurugram, Haryana, with its presence marked in more than 13+ countries and over 10,000 customer base. The logistics company which started with 5 people has climbed up to the very top in the e-commerce sector.
Delhivery uses a B2B i.e Business-to-Business model. In this type of model, instead of targeting other individuals, the businesses get in contact with other businesses to provide their services.
It provides services like third-party fulfillment, order management, logistics, shipping for other businesses.
Competition has always proved to be an energiser, like a wake-up call to the companies. Due to this, customers are also getting the opportunity of choice among various services.
E-commerce sector is highly competitive, there is cut-throat competition among various companies. You cannot slack off even for a short amount of time.
Due to it’s never-stopping growth, Delhivery is giving a head-bent competition to other similar logistics companies such as Ecom Express, Future Supply Chain (FSC), DotZot, Delex, BlackBuck, FedEx, Delivery.com.
FUNDING & VALUATION
In April 2012, Delhivery raised a total of $1.5 million from Times Internet Limited, which can be considered an accomplished milestone for the company.
The very next year, the company partnered with Nexus Venture Partners which resulted in a funding of $5 million.
In the next 3 consecutive years, Delhivery raised a total of $212 million by joining hands with Tiger Global Management, Carlyle Group, Tiger Global, Fosun, and Fosun International.
In 2019, the logistics company took everyone in awe by raising $413 million from SoftBank Vision Fund, Carlyle Group, and Fosun International.
Today the whole logistics company is valued at $1.5 billion. In the next 2 years, it is estimated to grow its business even more and become the best in its industry.
REVENUE & CASHFLOW
In 2017, the company has a revenue of $74 million. In the next few years, it rose almost 25% and currently it has an annual revenue of $129 million.
As of 2020, Delhivery has a network across 2,300 towns and cities in India. It delivers over 1.5 million orders per day and has around 7,000 drivers and 5,000 trucks under its name.
DELHIVERY BUSINESS MODEL: THE CONCLUSION
Delhivery has become one of the most reputed logictics company in India through it’s hard work and determination.
They are also planning to build Truck Terminals at important locations in Delhi, Bangalore, Chennai, Mumbai, Kolkata and Hyderabad. Moreover, it is also keep on investing in building trucking infrastructure.
I hope you found this Delhivery Business Model interesting and got to learn many new things, do comment and share this article with your friends.