Delhivery acquires Aramex's India operations to expand e-commerce logistics footprint
Gurugram-based Delhivery has acquired the India unit of Dubai courier giant Aramex on undisclosed terms, deepening its lead in India's $1.35 billion e-commerce logistics market. The deal follows $257.6 million raised and comes as Delhivery eyes a unicorn-level funding round despite a Rs 692.21 crore FY18 net loss.
What happened
Delhivery acquired the India operations of Dubai-based Aramex (terms undisclosed), strengthening its position in India's e-commerce logistics market that serves
Key facts
- $257.6 million raised
- $700-800 million valuation
- $130 million round May 2017
- Rs 1,023.05 crore operating income FY18
- Rs 692.21 crore net loss FY18
- India e-comm logistics market $1.35 billion 2018
- 19 lakh shipments/day
- 36% projected growth
Why this matters
The undisclosed-terms acquisition of a global player's India unit signals aggressive consolidation, opening opportunities for competitors to pursue their own tuck-in logistics deals before Delhivery locks up the market.
What to watch
- Confirmation and size of the unicorn funding round
- FY19 loss trajectory and gross margin per shipment
- Competitor acquisition announcements (Ecom Express, XpressBees)
- Marketplace captive-logistics buildout by Amazon/Flipkart
- Daily shipment volume trend beyond 19 lakh benchmark
- Aramex client/talent retention post-integration
- Close unicorn-level funding round to fund integration and network expansion
- Rationalize overlapping hubs and delivery routes to extract cost synergies
- Cross-sell Aramex international freight to existing e-commerce clients
- Lock in enterprise SLAs with large marketplaces to defend daily shipment volume
- Invest in automation to improve unit economics ahead of any IPO narrative