News Update

Delhivery likely to turn cash flow positive in 6-8 Qtrs

• ByStartupStory     |    June 1, 2022

Technology-based logistics company Delhivery Ltd expects positive cash flow in the next six to eight quarters, said co-founder and CEO Sahil Barua. 

Based in Gurgaon, the company announced its first quarterly financial results since its listing on the domestic stock exchange on Monday. Delhivery reported that adjusted Ebitda (interest, taxes, depreciation, and income before amortization) was Rs 7.2 billion over the three months to March. 

“Investors don’t feel uncomfortable with high-margin companies. It was important to generate operating profit and maintain revenue growth,” Barua said in an interview following the results. 

Delhi Berry reported a net loss in the March quarter, but operating profit doubled from £ 1.31 trillion in the previous year to £ 2.701 trillion. Delhivery was listed at a premium of 10% in May after the post-listing blunders of consumer tech companies such as Zomato, Paytm, and Nykaa were suspended. Keeping in mind that 

Delhivery is often compared to consumer technology companies, Sandeep Barasia, CEO of Delhivery, said: Looking at all the consumer tech companies listed recently, their sales aren’t growing as fast as we are. Our revenue is four times that of those companies. 

Delhivery’s capital investment fell from 7% last year to 6.2% today, and the company expects this to drop further to 5% in the future. Delhivery was founded in 2011 by Barua, Mohit Tandon, Babeshman Grani, Slajusahara, and Kapilba Haratti as a hyperlocal express logistics company. In 2019 it became a unicorn.

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