Lee Fixel Invests $75M in Delhivery

Delhivery Secures $76.4 Million Investment from Addition

Delhivery, a prominent Indian logistics company, has attracted further investment as it prepares for its anticipated IPO within the next two quarters.

Addition, led by Lee Fixel, has injected $76.4 million into the Gurgaon-based firm. This new capital infusion is part of a Series I funding round, as reported by market intelligence provider Tofler.

From Food Delivery to Comprehensive Logistics

Initially launched a decade ago as a food delivery service, Delhivery has successfully transitioned into a provider of complete logistics solutions.

The company now serves over 2,300 cities and more than 17,500 postal codes across India. It is actively working to modernize the logistics sector through a digital freight exchange platform.

Recent Funding Rounds

This investment follows a $100 million contribution from a FedEx subsidiary and the completion of a $277 million financing round earlier this year. Delhivery had previously indicated its intention to file for an IPO within six to nine months.

Delhivery is a major player in the Indian logistics landscape, operating a platform that connects shippers, agents, and trucking companies for road transport solutions.

Digitization and Efficiency

The platform aims to minimize the involvement of intermediaries, enhance the efficiency of assets like trucking – a primary mode of transport for Delhivery – and ensure continuous operations.

This digitization effort is vital for addressing longstanding inefficiencies within the Indian logistics industry, which have historically hindered national economic growth. Analysts at Bernstein highlight that inadequate supply and demand forecasting leads to increased costs, theft, damage, and delays.

Extensive Reach and Delivery Network

Having processed over 1 billion orders, Delhivery collaborates with India’s leading e-commerce businesses and enterprises. The company boasts a customer base exceeding 10,000 clients.

To optimize last-mile delivery, couriers are assigned territories limited to 2 square kilometers, enabling multiple deliveries per day and maximizing time efficiency.

Market Potential and Expansion Plans

The total addressable market (TAM) for Indian logistics is estimated to exceed $200 billion, according to Bernstein analysts.

Delhivery announced plans late last year to invest over $40 million over two years to expand its fleet and meet the rising demand driven by increased online shopping during the pandemic.

Lee Fixel’s Continued Investment in India

Lee Fixel is a well-known figure in the Indian startup ecosystem, recognized as an early investor with a keen eye for potential. His initial investment in Flipkart through Tiger Global significantly accelerated the growth of India’s startup scene.

Addition, the venture firm established by Fixel last year, is actively focusing on the Indian market, with previous investments in the Public social network and neobank Jupiter.

Fixel also continues to make individual investments in Indian startups, and is reportedly in discussions to support Third Wave, a Bangalore-based coffee chain.