Delhivery falls to all-time low after muted growth report • TechCrunch


Delhivery shares are down more than 32% since Thursday, falling below the issue price from May, after Indian logistics company It reported muted quarterly business growth this week.

Delhivery said this week that its supply chain services business and truckloads contracted in the quarter to September. Delhivery share prices plunged in the news, dropping from 562 Indian rupees ($6.8) per piece to 382 Indian rupees ($4.62) before recovering slightly. Delhivery’s issue price was INR 487, while its shares surged to a high of INR 708.45 in July.

The downturn has pushed Delhivery’s market value below $3.4 billion, just above and below the $3.2 billion valuation assumed in its pre-IPO funding round. Valuation $4.2 billion In a secondary deal between its investors a year ago.

The lock-up period for its shareholders before the IPO goes up on November 10, which could see more massive selling. The company includes SoftBank, Tiger Global, Times Internet, The Carlyle Group, Steadview Capital and Addition among its backers.

Image credits: Yahoo Finance

Delhivery assured investors that it is on its way to recovery. The company said it made “sufficient investments in financial capacity in FY22 and early FY23 to maintain our current growth rate and we expect new decisions for mega gate and sorting only by early FY24.”

“With inflationary pressures subsiding and services disruption due to monsoons across the country, we expect an improvement in volume, revenue and service margins going forward,” it said in its quarterly report published on local stock exchanges.

Friday concludes a difficult week for Indian start-ups that have been going public for the past year and a half. purity Fashion e-commerce market, which has been the best performer so far among tech startups, is trading just above the issue price. Shares of online insurance company Police Bazaar, which lifted its lock-up period for investors before the IPO next month, have lost more than 60% of their value from the issue price.

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