Sector: Logistics and Supply Chain
Founded: 2011
Valuation: $3 billion (2022)

Overview: Delhivery is a logistics and supply chain services company, founded in 2011. It provides last-mile delivery, warehousing, freight, and reverse logistics solutions, serving B2B and B2C segments across India.

Challenges encountered:

• Managing operational efficiency in the logistics space, especially with rising fuel and labour costs particularly in last-mile delivery.
• Cash flow challenges due to long payment cycles from clients.
• Complexity in navigating India's diverse tax and regulatory environment.
• Scaling across India's vast geographical landscape while maintaining on-time delivery.

Solutions Implemented:

• Delhivery invested in automation and AI-driven logistics, improving operational efficiency and reducing delivery costs.
• Cost Optimization: Developed a financial model to analyze route efficiency, leading to the implementation of dynamic route optimization and cost reduction strategies in last-mile delivery.
• Working Capital Solutions: Introduced a vendor financing program where suppliers could receive early payments, easing cash flow pressures on the business.
• Tax and Compliance Automation: Implemented an automated tax compliance system to reduce manual errors and streamline the regulatory filing process across different states.
• The company raised over $850 million from SoftBank, Tiger Global, and others, helping it expand its warehousing capacity and invest in technology.

Outcomes Attained:

• Significant reduction in last-mile delivery costs, improving profitability.
• Enhanced cash flow management through early payment programs for vendors.
• Reduced regulatory risks and penalties, improving operational compliance and efficiency, leading to a successful IPO in 2022.