Shares of Delhivery hit an all-time low of 317 Indian rupees ($3.88) on Wednesday, pushing its market cap to $2.8 billion, falling below the valuation at which it raised capital from private investors in 2021, while India’s logistics company company is grappling with the aftermath of a bulk deal sale and a muted growth report.
Shares of the Gurgaon-based company, which went public in May this year, fell to 317 Indian rupees, well below the issue price of 487 and an all-time high of 708.45. The share move follows CA Swift Investments which this week redeemed its position in Delhivery for $74.2 million. A major sell-off puts downward pressure on stocks.
At the current share price, Delhivery’s market cap has shrunk to $2.8 billion. It was valued at $3 billion in a round led by Fidelity in May 2021. The company has raised more than $2.3 billion through private rounds and IPO (including secondary sales).
Founded in 2011, Delhivery is one of India’s largest fully integrated logistics companies, serving customers in over 18,000 postal codes. It counts SoftBank Vision Fund, Tiger Global, Carlyle Group, Steadview Capital, Singapore’s GIC and Britain’s Baillie Gifford among its backers.
The startup reported moderate growth in quarterly business last month, stating that its supply chain service volume and truck count had shrunk.
The company assured investors that it “has made sufficient capacity investments in FY22 and early FY23 to support our current growth rate and not expect new mega-gateway and sorting decisions until early FY24.”
Delhivery is one of the few Indian tech startups to make the list in the past year and a half. All the other startups are also trading well below their IPO prices. Indian fintech giant Paytm, which hit an all-time low on Tuesday, fell further to just 452 Indian rupees on Wednesday, dropping its market cap to $3.6 billion. Online insurer Policybazaar fell to just 391 Indian rupees, down from the issue price of 980.
India’s Sensex – the local equity benchmark – continues to rise 4.16% this year, significantly outperforming the S&P 500 index (-16.5%) and China’s CSI 300 (-23.27%).
