SoftBank-backed Delhivery alleges IPO-bound Ecom Express provided misleading data

Ecom Express said it had shipped 514.41 million packages in FY24, comparing it with Delhivery which handled 740 million packages during the same period.
Image used for representational purposes
Image used for representational purposes
Updated on
1 min read

BENGALURU: SoftBank-backed logistics firm Delhivery has claimed that IPO-bound Ecom Express used misleading data about the company in its draft initial public offering prospectus.

Last month, Ecom Express submitted the draft prospectus and said it had shipped 514.41 million packages in FY24, comparing it with Delhivery which handled 740 million packages during the same period.

Delhivery said in its filings that this comparison is problematic on several counts as "per shipment metrics hugely vary depending on shipment profile – weight profile for Delhivery and peer will be significantly different due to different client mix."

Pointing out cost per shipment (CPS) calculation, Delhivery said that the Service Ebitda cannot be compared due to lack of clarity on consistent definition of corporate costs.

The logistics firm also said that Delhivery delivers pan India and covers 18,793 pin codes as of March 31, 2024, and that there are 19,300 unique pin codes in the country. Ecom Express claims that it offers services in 27,000 pin codes.

Delhivery also said that the automation intensity of a logistics network is determined by sortation capacity in terms of number of shipments that can be sorted and not by the number of sorters or number of sortation centres.

Delhivery had 29 Automated Sortation Centres with 41 sorters and a sortation capacity of about 213 million shipments per month as of March 31, 2024.

Ecom Express, which is backed by Warburg Pincus, is planning to raise up to Rs 2,600 crore through IPO.

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