Logistics unicorn Delhivery is in early-stage talks to acquire Blue Dart Express Ltd & Gati Ltd’s B2B operations, according to sources aware of discussions.
The Gurugram-based delivery platform, founded by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati & Suraj Sharan, is one of India’s latest unicorns that has been valued at $ 1.5 billion in March after raising $ 413 million in a Series F funding round led by SoftBank Vision Fund, along with existing investors like Carlyle Group & Fosun International. The logistics startup has service sin over 600 cities across India.
Plunging profits & mounting losses- Blue Dart, Gati
Sources also revealed that Delhivery courier service has been looking to deploy a more extensive fleet network of Blue Dart & its existing connections with corporates and large conglomerates as an advantage with the potential acquisition. The logistics giant has a firm grip over retail express services like the ones used in ecommerce, consumer services, and offline retail looking for a long term sustainable & potential deal.
Blue Dart has reported a 35% YoY fall in its net profits in September quarters at Rs 14.64 crores while Gati posted a net loss worth Rs 11.10 crore in the September quarter. The previous year at the same time, Gati registered a net profit of Rs 1.31 crores. Blue dart, on the other hand, posted a 58% revenue growth for FY’19, simultaneously increasing its loss by over 100%.
Delhivery covering the vast logistics fleet
The sources cited above said that Blue Dart has an extensive logistics fleet of its own, excellent pin coverage, and an established corporate relationship with large brands. He added, “A lot of the strength in traditional logistics business lies in leveraging loyalty.” But with Blue Dart’s long-standing tie-ups with a lot of corporates for their B2B vertical & Delhivery’s retail logistics, a different market altogether, the deal is a perfect blend for user acquisition.
Delhivery tracking allows a user to trace its courier’s Delhivery track in real-time. Now imagine tracking down a drone delivering your parcel? The future is here, and yes, Delhivery did announce its plans for the same during the NASSCOM event.
Delhivery, announcing its plans during the NASSCOM Product Conclave recently, said that it wants to scale up its operations in India with the introduction of drones & EVs. The company expects the inclusion of drones in the deliveries to cut the cost of shipments by 45%.