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Shares of Delhivery hit an all-time low of 317 Indian rupees ($3.88) on Wednesday, shedding $2.8 billion from its market capitalization, falling below estimates to raise capital from private investors in 2021, as the Indian logistics firm grapples with a subsequent bulk deal sale and muted growth report.
Shares of the Gurgaon-headquartered firm, which went public in May this year, fell as low as 317 Indian rupees, well below its issue price of 487 and its all-time high of 708.45. CA Swift Investments offloaded its position in Delhivary this week for $74.2 million following the share movement. A large sell-off puts downward pressure on the stock.
At the current share price, Delhiveri’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 firm has raised $2.3 billion across private rounds and IPOs (including secondary sales).
Founded in 2011, Delhiveri is one of India’s largest fully-integrated logistics companies, serving customers in over 18,000 zip codes. It counts SoftBank Vision Fund, Tiger Global, Carlyle Group, Steadview Capital, Singapore’s GIC and UK’s Baillie Gifford among its backers.
The startup reported muted quarterly business growth last month, noting that volumes in its supply chain services and truckload businesses shrank.
The company assured investors that it has “invested sufficient capacity in FY22 and early FY23 to maintain our current growth rate and expects new mega-gateways and sorting decisions only in early FY24.”
Delhiveri is among a handful of Indian tech startups that have listed in the last year and a half. All 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 452 Indian rupees on Wednesday, with its market capitalization falling by $3.6 billion. Online insurer PolicyBazar has seen issue price drop to INR 391 from INR 980.
India’s Sensex – the local stock benchmark – is up 4.16% this year, significantly outperforming the S&P 500 index (down 16.5%) and China’s CSI 300 (down 23.27%).
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