DELHIVERY: A Case Study

Delhivery Limited is a leading Indian logistics and supply-chain company offering express parcel delivery, part-truckload (PTL) freight, warehousing, supply-chain services, and technology-enabled logistics operations. Headquartered in Gurugram, Haryana, Delhivery’s mission is to create “the operating system for commerce” through world-class infrastructure, robust operations, and cutting-edge technology. Since its inception in 2011, the company has delivered billions of shipments and built a nationwide network covering most pin codes in India.

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The Company and Its Founders

Delhivery was founded in May 2011 by five former consultants and engineers: Sahil Barua (CEO), Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati. Initially registered as SSN Logistics Ltd., the company started with hyper-local delivery services, handling food and flower orders in Gurgaon. The business pivoted to e-commerce logistics after securing its first online retail client in June 2011.

The founding team, primarily from Bain & Company, identified significant gaps in India’s logistics and last-mile delivery ecosystem and set out to build a scalable, tech-driven solution.

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Journey, Growth, and Expansion

Delhivery’s journey can be divided into key phases:

• 2011–2014: Transitioned from hyper-local delivery to e-commerce logistics, expanding operations across metro cities.
• 2015–2019: Established a nationwide logistics network, automated facilities, and invested heavily in infrastructure including sortation hubs and delivery centres.
• 2020–2022: Expanded service offerings to include PTL freight, warehousing, fulfillment, and advanced logistics technology. Research suggests Delhivery now holds over 20% volume market share in India’s express parcel segment.
• 2023–2025: Achieved full-year profitability. In FY25, services revenue reached ₹8,931.9 crore, while profit after tax stood at ₹162.1 crore. This positive turn was driven by growth in the PTL business and operational efficiencies.

Geographically, Delhivery claims coverage across 18,700+ pin codes, with 24 automated sort centres, 94 gateways, and 2,880 direct delivery centres. Its workforce ranges between 57,000 and 92,000 employees depending on the source.

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Business Model

Delhivery operates on an integrated, technology-driven logistics model for e-commerce, brands, SMEs, and enterprises. Key components include:

• Core Services: Express parcel delivery, PTL/FTL freight, warehousing, fulfilment services, reverse logistics, and technology-led value-added services.
• Hybrid infrastructure strategy: Mix of company-owned and asset-light network partners.
• Technology backbone: Proprietary routing software, automated sortation, real-time tracking, and an integrated logistics operating system.
• Revenue model: Based on per-shipment, per-tonne-km, per-pallet charges, subscriptions for supply-chain services, and value-added fees.
• Economies of scale: Large network size enables volume advantages, higher asset utilisation, and cost efficiency.

The business aims to evolve into the “operating system for commerce,” integrating logistics infrastructure with smart technology.

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Products / Services

Major offerings include:

• Express Parcels: Next-day, two-day, same-day deliveries.
• PTL & FTL Freight: Bulk regional and national goods movement.
• Warehousing & Supply Chain: Inventory storage, processing, and fulfilment for brands and enterprises.
• Value-Added Services: Returns, reverse logistics, dark stores for quick commerce.
• Technology Solutions: Proprietary analytics dashboards, logistics OS, and routing systems.

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Financial Performance

Key highlights based on public data (FY ending March):

• FY24: Revenue – ₹8,594 crore (up 12.7% YoY), Net loss – ₹249.2 crore.
• FY25: Revenue – ₹9,372 crore (up 9.0% YoY), Net profit – ₹162.1 crore (first annual profit).
• Q4 FY25: Revenue – ₹2,191 crore, Net profit – ~₹72 crore.

EBITDA turned positive in FY25 with a significant operating improvement. Over FY19–25, Delhivery achieved approximately 25–30% revenue CAGR.

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Future Prospects

Delhivery stands to benefit from strong industry tailwinds:

• Growth Drivers: E-commerce expansion, higher logistics outsourcing, government infrastructure investment.
• Revenue Outlook: As per Motilal Oswal, expected to grow at a 14% CAGR between FY25–28, led by 18% CAGR in PTL and 10% in express parcels.
• Margin Expansion: Expected improvement in RoE from 1.8% in FY25 to 5.6% by FY28.
• Network superiority: Large footprint and infrastructure give Delhivery an edge in entering new verticals.
• Innovation Focus: Continued investment in automation, AI, and high-efficiency logistics software.

Challenges include fuel price volatility, cost-sensitive margins, intense competition, and fluctuating volumes based on retail consumption.

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Funding Background

Delhivery has raised considerable external capital to support rapid expansion:

• 2019: US$413 million from SoftBank Vision Fund (entered unicorn club).
• 2021: US$277 million led by Fidelity.
• 2022: ₹2,347 crore (US$303.7 million) raised from anchor investors ahead of IPO.
• IPO: Listed on BSE and NSE in May 2022.

These funds enabled the company to invest in network growth, automation, and technology capabilities.

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Top Competitors

• Blue Dart Express: Backed by DHL Group, strong brand and air cargo but higher cost structure.
• Ecom Express: E-commerce logistics-focused, fast expansion but less diversified and profitability under pressure.

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Other Competitors: Strengths & Weaknesses

• DTDC Express: Strong franchise network; weaker technology and scale in new-age logistics.
• Mahindra Logistics: Backed by Mahindra Group; limited focus on consumer logistics.
• Gati Limited: Established footprint but affected by legacy financial stress and outdated tech stack.

Delhivery’s strengths lie in its diversified services, scalable infrastructure, and recent profitability. Weaknesses include growth moderation, margin sensitivity, and pressure to innovate continuously.

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Government and Regulatory Support

Delhivery benefits from India’s policy initiatives:

• The PM Gati Shakti plan and National Logistics Policy support digitisation and infrastructure build-out.
• The company’s wide network aligns with national goals of boosting connectivity and logistics efficiency.
• Regulatory headwinds such as fuel cost fluctuations, labour laws, and local compliance remain operational risks.

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Conclusion

Delhivery is one of India’s leading logistics innovators, combining infrastructure, technology, and scale to build a complete commerce-focused logistics operating system. From humble origins in 2011 to becoming a profitable leader with over ₹9,372 crore in revenue and 20%+ market share in express parcels by FY25, Delhivery has demonstrated strategic focus and operational maturity.

To maintain momentum in a cost-sensitive and competitive sector, Delhivery must grow beyond its current 9–12% pace, expand high-margin verticals like PTL and fulfillment, and maintain cost discipline. With continued innovation and execution, Delhivery is poised to become the backbone of India’s logistics sector for decades to come.