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Delhivery plans to invest up to Rs 300 cr for expansion

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Delhivery plans to invest up to Rs 300 cr for expansion

Logistics firm Delhivery is planning to invest up to Rs 300 crore in 18-24 months on expansion, including increasing fleet size and setting up of trucking hubs, in order to meet increased demand for more organised players in the sector in the wake of COVID-19 pandemic. The company is planning to add around 150 trucks to its fleet apart from launching trucking terminals in Delhi, Mumbai and Bengaluru as it sets eyes on clocking revenue close to Rs 7,000 crore in the next 24 months, up from Rs 2,800 crore last year.

Its total capital investment over the next 18-24 months is going to be in the range of Rs 250-300 crore. It will continue to invest behind growing the trucking network and plans to launch three of the largest trucking terminals in the country in Delhi, Mumbai and Bangalore.

The supply chain services firm which started in 2011 will continue to grow its fleet with Volvo and other partners.

Its own fleet all put together is 300 vehicles, which it hopes to expand to about 400-450 vehicles over the next 18 months. Currently, it is doing about 1.5 million orders a day in its express business and handle close to about 3,000 tonnes of cargo a day. The company did about Rs 2,800 crore of revenue last year. and expects to reach close to Rs 6,000-7,000 crore of revenue in the next 24 months.
Delhivery is an extremely well-capitalised company to meet its investment requirements considering the backing of its investors, which include the Canadian Pension Plan and Soft Bank, among others.