Delhivery Group Is Investing In Tech Firm Vinculum

Delhivery Group Is Investing In Tech Firm Vinculum

As part of the deal, Delhivery can increase its stake in the company after six months by further investing. As a result of a strategic alliance with Vinculum, Delhivery can offer brands a more competitive fulfilment solution, said Rajaganesh S, Head of Supply Chain Solutions at Delhivery.

Vinculum has grown into a leading SaaS omnichannel software provider with a client list that includes 350+ brands across retail, food and beverage, healthcare, beauty, cosmetics, and fashion in India, South East Asia, and the Middle East.

Investing in Vinculum by Delhivery is an excellent move for us. Vinculum Group CEO Venkat Nott said our customers would benefit from deep integration between the companies, tremendous collaboration opportunities, and immense business value.

As a result of this investment, the two companies will build an integrated cloud platform that addresses all of a D2C brand’s post-purchase needs. This will be India’s first fully-integrated E2E offering that integrates Vinculum’s industry-leading Order Management System (OMS). 

Delhivery reported revenue of Rs 1,860 crore in the quarter ended March 31. A profit of Rs 6 crore was posted in Q4, up from a loss of Rs 67 crore in Q3. According to Sahil Barua, Managing Director and CEO of Delhivery, the company was confident that its core transportation business and profitability would continue to improve and deliver both as planned in this quarter.

Delhivery to invest in Vinculum

Gurugram-based Delhivery could increase its stake in the company after six months by investing in the first two stages of the deal. There was no indication of the value of the transaction between the two companies. In addition to enabling omnichannel retailing for brands and retailers, Vinculum provides fulfilment capabilities to 3PLs (third-party logistics) and online marketplaces, according to Rajaganesh S, Delhivery’s head of supply chain solutions.

It is Delhivery’s focus market, and this investment is expected to enhance its position as a leader in direct-to-consumer fulfilment. Investing in one another will provide a complete integrated stack for addressing a D2C brand’s post-purchase needs. The integration will be a first-of-its-kind fully-integrated E2E offering that fully combines Vinculum’s industry-leading Order Management System (OMS). 

Vinculum’s investment will lay the foundation for deep technology integration, tremendous collaboration opportunities, and immense business value for our customers, said Vinculum Group CEO, Venkat Nott. A good closing of the investment is required. One of the pioneers of software development from India, E-commerce and Omni Channel are two of the most substantial growth opportunities for brands today. 

The company has scaled up into an omnichannel SaaS (software-as-a-service) company since the post-covid industry and consumer shift. More than 400 brands are part of its portfolio in India, South East Asia, the Middle East, and South East Asia, spanning groceries, FMCG, healthcare, beauty and cosmetics, fashion, and jewellery. Delhivery reported a quarterly loss of Rs 159 crore.

The company lost Rs 120 crore last year. Its total operating income declined 9 per cent from Rs 1,934 crore a year ago. According to a company filing, adjusted EBITDA margins improved to 0.3% in Q4FY23 after a decrease of 3.7% in Q3FY23. Gross margins in the core express parcel and partial truckload businesses were above 50%. 

A combination of factors contributed to this margin improvement, including continued network capacity utilization. Technologies that optimize fleet operations and improve revenue and margin quality across customer segments were also factors that played a role.

A Full Truckload Exchange (Orion) has also been developed to give brokers and fleet owners access to the company’s internal and third-party demand. A rise in Express Parcel volumes of 10 million shipments, compared with Q3FY23, is also reported, despite Q3 being a seasonally strong and festive quarter. 

The corresponding revenue in Q4 FY23 was Rs 1,177 crore. With consistently high-quality service, PTL revenues grew in Q4 FY23 by 19 per cent over Q3 FY23 to Rs 328 crore. As a result, PTL volumes increased 23 per cent from 258K tonnes in Q3 FY23 to 318K tonnes in Q4 FY23. 

Proofread & Published By Naveenika Chauhan