Delhivery eyes at investing up to Rs 300 cr for expansion
Delhivery is looking at investing up to Rs 300 crore in the next 18-24 months for expansion. The logistics firm plans to increase fleet size and set up trucking hubs. The development comes in a bid to meet the increased demand for more organised players in the sector due to the COVID-19 pandemic.
With this investment, the supply chain services firm is eyeing to add around 150 trucks to its fleet besides opening trucking terminals in Delhi, Mumbai and Bengaluru. The company aims to clock revenue close to Rs 7,000 crore in 24 months, up from Rs 2,800 crore in 2019.
Sahil Barua, Chief Executive Officer & Co-Founder, Delhivery, said, “Our total capital investment over the next 18-24 months is going to be in the range of Rs 250-300 crore. We will continue to invest in growing our trucking network. We are going to launch three of the largest trucking terminals in the country in Delhi, Mumbai and Bangalore.”
Started in 2011, Delhivery will be continuing to increase its fleet with Volvo and other partners.
“Our own fleet all put together is 300 vehicles. We will expand that to about 400-450 vehicles over the next 18 months. The company's partner fleets, wherein a large number of other operators work with it, operate with close to 5,000-7,000 vehicles daily,” Barua added.
At present, the company is doing about 1.5 million orders a day in its express business. It further handles close to about 3,000 tonnes of cargo a day. Delhivery expects to grow its revenue by at least 35-40% this year.
Barua further stated, “We did about Rs 2,800 crore of revenue last year. We expect to grow at least 35-40 per cent this year. At this point, we are trending higher than that but we will end up around 40 per cent higher than last year. We expect to reach close to Rs 6,000-7,000 crore of revenue in the next 24 months.”