Riding on the back of an ecommerce boom, India-based logistics service Delhivery raised a series D round of US$85 million led by Tiger Global Management.
Last year, the company received US$35 million from Multiples Alternate Asset Management, Nexus Venture Partners, and Times Internet Limited. These investors have also participated in this round.
This has so far been the biggest deal for an ecommerce support venture in India.
Delhivery has a range of proprietary commerce technologies that they’ve built in-house to tackle logistics problems.
“Delhivery has built its market-leading position by innovating extensively in its growing portfolio of commerce technologies while expanding its logistics infrastructure, fulfilment, and transportation services,” says Lee Fixel, partner of Tiger Global.
The company has over 10,000 employees in more than 200 cities along with nearly a million square feet of warehousing space in 11 fulfilment centers. It handles over 3 million monthly transactions for 70,000 merchants and 1,500 ecommerce companies.
With the funding, it plans to tap into India’s rural market and build 2.5 million square feet fulfilment centers. The startup aims to expand its reach four-fold.
“We will deploy this capital to build infrastructure and design services for ecommerce, hyper-local commerce, C2C commerce, and other verticals with specialized requirements such as reverse logistics, furniture and grocery,” said the company’s spokesperson.
Delhivery is also expected to invest heavily in expanding the senior management team. It has recently appointed Sandeep Barasia, senior partner of Bain and Company and Suraju Dutta, ex-FedEx executive, as managing directors.
Barasia will lead the company’s product and service portfolio and will focus on innovation, business strategy, and organization development.
Dutta has over two decades of strategic leadership experience from global supply chain giant Federal Express, where he oversaw operations in over 66 countries. “His expertise will help develop Delhivery’s domestic and international footprint through progressive expansion of its infrastructure and service capabilities,” the company says.
The last mile problems that ecommerce runs into due to poor infrastructure in India makes services like Delhivery’s vital. Homegrown ecommerce firm Flipkart has developed a logistics arm called E-kart. It is now experimenting with other ways to ease this pain.