Delhivery hits record low, market cap falls below 2021 private valuation

Shares of Delhivery hit an all-time low of 317 Indian rupees ($3.88) on Wednesday, reducing its market capitalization to $2.8 billion, falling below the valuation at which it raised capital from private investors in 2021, while the Indian logistics firm grapples with wholesale fallout and reports muted growth.

Shares of the Gurgaon-headquartered firm, which went public in May this year, fell to 317 INR, well below the issue price of 487 and its all-time high of 708.45. The stock’s move follows CA Swift Investments, which unloaded its Delhivery position for $74.2 million this week. Big selloffs put pressure on stocks.

At the current share price, Delhivery’s market capitalization has shrunk to $2.8 billion. It was valued at $3 billion in a round led by Fidelity in May 2021. The firm has raised over $2.3 billion through private placements and IPOs (including secondary sales).

Founded in 2011, Delhivery is one of India’s largest fully integrated logistics companies serving customers in over 18,000 zip codes. Its backers include SoftBank Vision Fund, Tiger Global, Carlyle Group, Steadview Capital, Singapore’s GIC and UK’s Baillie Gifford.

The launch reported muted quarterly business growth last month, saying its supply chain services and volume of trucking business had shrunk.

The company assured investors that it has made “sufficient capacity investments in FY22 and early FY23 to sustain our current growth rate and expect new mega portal and sorter solutions only until early FY24.”

Delhivery is among a handful of Indian tech startups that have gone public in the past year and a half. All other startups are also trading well below their IPO prices. Indian fintech giant Paytm which hit its lowest level on Tuesday, fell further to INR 452 on Wednesday, reducing its market capitalization to $3.6 billion. Online insurer Policybazaar fell to INR 391, down from its issue price of INR 980.

India’s Sensex — the domestic stock benchmark — remains up 4.16% this year, significantly outperforming the S&P 500 (down 16.5%) and China’s CSI 300 (down 23.27%).

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