Plan is to build a $10-billion company, says Delhivery

 Delhivery, country’s largest fully-integrated logistics provider, will pursue both organic and inorganic growth opportunities as it goes about fulfilling its aspiration of becoming a $10-billion company in the coming years, Sandeep Barasia, Executive Director and Chief Business Officer, has said. 

The company, which got listed in bourses last week, will also continue to equally focus on both B2C (business to consumer) as well as business-to-business (B2B) segments in its growth journey, Barasia told BusinessLine in an interaction post the announcement of Q4 as well as 2021-22 results. 

Open to acquisitions

According to Barasia, growth would be faster on the B2B segment which has a smaller base. On the other hand, growth in the B2C segment continues to be driven by e-commerce. People have also started warming up to e-commerce, which is no longer seen as a deep discounting model, he noted.

Barasia, who said that company is open to more acquisitions for growth, said acquisitions, if any, would be primarily focussed on the B2B segment. “We have quite a bit of free cash and so if there is an acquisition that will take place in the segment, we are definitely going to be there among the discussions,” Barasia added.

He also made it clear that Delhivery should not be seen as a consumer tech player, but as a business that is leveraging technology and data to serve a traditional industry that is logistics.

‘A matter of time’

Asked whether he expects the company to turn bottomline positive this fiscal, Barasia declined to put a specific timeline. He, however, highlighted that the company is already profitable at an EBITDA level and it would be “only a matter of time” before which it would turn bottom-line positive.

“We want to tap into both organic and inorganic growth opportunities. So while we are already EBITDA positive, profitability on the bottom-line level will follow soon, our plan is to build a $10-billion company,” he said, highlighting the immense growth runway ahead in the logistics sector.

Barasia said Delhivery would look to pursue growth by using capital efficiently. “The opportunity is there as we are operating in a country with 8 per cent GDP growth and on top of that, there is also inflation — so we are operating in a country with nominal GDP growth of 15 per cent. We have historically exceeded the underlying economic growth. I don’t see a reason why it can’t happen this fiscal also,” he said.

He highlighted that the Indian logistics market is huge at $200 billion and Delhivery was still a tiny player with a huge runway for growth in the years to come.