Logistics company Delhivery Ltd today said it has invested in Falcon Autotech, a logistics automation solutions provider. The investment, Delhivery stated, is in line with its objective of sustained investments in future-ready hardware solutions in its operations.
Falcon Autotech is in the business of providing intralogistics automation solutions, sortation systems, conveyor systems, delivery-warehousing systems, and pick/put to light systems
Commenting on the investment, Ajith Pai, Chief Operating Officer, Delhivery, said, “The collaboration with Falcon Autotech strengthens our ability to drive greater speed, precision, and efficiency across our business lines.”
With this partnership, Delhivery said it expects to work closely with Falcon Autotech to design and implement new automation solutions for transportation and warehousing operations.
The partnership will also enable the bundling of the hardware automated solutions along with Delhivery’s SaaS platform, one of the proposed growth verticals for Delhivery in the national and international market.
Naman Jain, Chief Executive Officer, Falcon Autotech, added, “We are delighted to welcome Delhivery as a partner to Falcon. This investment is a testimony to Falcon’s commitment to our customers, our design, technology, and delivery capabilities, and the product roadmap ahead.”
Delhivery already operates 20 automated sortation centres, 124 gateways, and 83 fulfillment centres across India as of June 30, 2021. According to a RedSeer Report, Delhivery is India’s fastest-growing fully integrated logistics services player by revenue as of FY21. With its nationwide network covering over 17,000 pin codes during the six months ended June 30, 2021, the company provides a full suite of logistics services such as express parcel transportation, PTL, TL freight, cross-border, supply chain, and technology services.
The company is planning an initial public offering (IPO) to raise up to ₹7,400 crore (nearly $1 billion), joining a long list of startups that have tapped the capital market this year.
The IPO will consist of a fresh issue of shares worth ₹5,000 crore and an offer for sale of shares worth ₹2,460 crore, according to a copy of its draft herring prospectus dated November 1.
Kotak Mahindra Capital, Morgan Stanley India, BOFA Securities and Citigroup are the bookrunning lead managers for the IPO.
Delhivery competes with DHL’s unit Blue Dart Express Ltd and DTDC India in the $150 billion domestic logistics sector, which contributes about 14% to the country’s gross domestic product, according to the government’s Logistics Skill Council.
Source : Live Mint
