Exclusive: Delhivery rewards its leadership team ahead of IPO

Logistics firm Delhivery appears to be rewarding its leadership ahead of its plan to go public. The company has allotted partly paid shares worth Rs 178.5 crore to 17 people in the leadership team including the founders, regulatory filings show.

The filings further reflected that the SoftBank-backed company has already received Rs 17.04 crore subscription money out of the whole consideration of Rs 178.5 crore and the rest will be collected on later calls. 

The development of allotment of these additional shares to early employees of Delhivery comes at a time when the company is reportedly planning to raise $800 million through public listing at a valuation of $3.2-4 billion. This allotment will increase the position of the leadership team in the capital right before the potential IPO and will likely increase the value of their holdings.

Delhivery’s co-founders Sahil Barua and Kapil Bharati along with Sandeep Barasia, Ajith Pai and Amit Agarwal have been allotted shares worth Rs 24.63 crore each. Barasia and Pai and Agarwal are chief business officer, chief operating officer and chief financial officer of the Gurugram-based company.

Other employees have also been allotted the rest of the shares in this tranche.

Entrackr has sent queries to Delhivery regarding the allotment of partly paid shares to early employees. We’ll update the post in case they respond.

While Delhivery has been waiting for upcoming rules on the foreign listing, the company also said that it would prefer to list in India. The company has been able to narrow its losses to Rs 269 crore in FY20 from Rs 1772.7 crore in FY19. During the period, its consolidated revenue surged by 76.4% to Rs 2,988.6 crore as compared to Rs 1694 crore in the previous fiscal year.

Delhivery claims to have a network beyond 17,500 pin codes and provides a full suite of logistics services including express parcel transportation, LTL- FTL freight, reverse and cross-border logistics. Since its inception, it has claimed to fulfil over 800 million orders.

Last month, Delhivery had raised $25 million through a secondary transaction from Steadview Capital. The alternative asset management firm bought shares from an early investor in the Gurugram-based firm. As of now, Delhivery has raised over $935 million across funding rounds and currently valued at around $1.5 billion.