Mitra was the chief executive of Spoton — a logistics firm Delhivery acquired in 2021 before its initial public offering (IPO) for about $300 million. He played a crucial role in the acquisition as well.
“Delhivery and Spoton have benefited from Abhik’s [Mitra] vast experience and his counsel to the leadership team of the combined partial truckload (PTL) business during an important transition have been hugely valuable,” the company said in a statement.
While Uday Sharma will continue his leadership of Delhivery’s PTL business along with Srinivasan S, Don Thomas, Omesh Khatri, and Harish Sharma, Mitra will continue engaging with Delhivery.
During an earnings call last year after Delhivery announced its Q1 earnings, senior executives told investors that challenges in integrating Delhivery’s PTL business with its acquisition of Spoton and the exit of Singapore-based ecommerce company Shopee created excess capacity in Delhivery’s operations and led to higher costs.
ET reported on April 21 that Delhivery has seen its market share in e-commerce shipments slip to an estimated 21.5% in 2022-23 (April-March), from 23% in FY22, and is expected to further fall to 19% by FY30, according to a report by brokerage firm Bernstein.
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The report pointed out Delhivery gained substantial market share in FY22, from 15-16% in FY21 to 22-23% in FY22.“While some market share gains were led by general fragmentation of shares in the Indian e-commerce space, some were led by new clients such as Shopee and the scale-up of players such as Meesho,” it said.
Bernstein also said that while the year-on-year growth in Delhivery’s ecommerce parcel volumes is expected to stay in the 14-17% till FY30, its market share will continue to slip with other third-party logistics players looking at potential gains.
Earlier in March, SoftBank sold 3.85% or 2.8 crore shares worth Rs 954 crore in Delhivery through bulk deals.