The Gurugram-based company also said it is benefitting from synergies following the integration of Spoton’s network with its own. It had acquired the Bengaluru-based firm in August 2021 for around $300 million to strengthen its business-to-business (B2B) vertical.
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The company said that the aggregate number of gateways and service centres for the combined entity was reduced to 94 (from 123), and 141 (from 267), respectively. Earlier, investors and brokerage firms have flagged concerns with Delhivery’s flawed integration with Spoton following its acquisition that led to problems with the company’s service quality.
The company’s management also said it was working on building real-time service level prediction systems in the ongoing financial year to pre-empt and avoid operational glitches, while also building artificial intelligence-based analytics to reduce frauds by bad actors in the ecommerce ecosystem.
Delhivery closed FY23 with a net working capital of 38 days – against 37 days in FY22, and 47 days in FY21. Net working capital is defined as the difference between receivable days and payable days.
The company said operating revenue fell marginally in FY23 to Rs 7,225 crore, from Rs 7,241 crore a year ago. Its net loss also saw no improvement, coming in at Rs 1,008 crore in FY23, compared with Rs 1,081 crore in FY22.
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On August 4, the company reported that its operating revenue had risen 10.5% year on year to Rs 1,929 crore in the June quarter. Its net loss narrowed to Rs 89.5 crore in the quarter, from Rs 399 crore a year ago.The company delivered 66.3 crore shipments in FY23 with 14% year-on-year growth in volumes of express parcel vertical, through which the company services ecommerce and direct-to-consumer players.
In its annual report for FY23, Delhivery had said it would look for new opportunities and expand its operations to a new set of customers.
“We seek to grow intracity as well as intercity delivery volumes on the ONDC (Open Network for Digital Commerce) platform in FY24. The integration of our cross-border ocean and air freight solutions with our domestic warehousing, part truckload and truckload services presents an added opportunity to service our domestic customers’ international supply chain requirements,” the company added.
On May 19, the logistics service provider partnered with Mystore, an ONDC-powered marketplace for Indian sellers, to provide express parcel shipping for rural entrepreneurs nationwide.
Delhivery also said it is working with banking and non-banking financial institutions to offer lower cost financing to its customers to reduce their supply chain cost.
The company saw its market share in e-commerce shipments slip to about 21.5% in 2022-23 (April-March), from 23% in FY22, and is expected to fall further to 19% by FY30, according to a report by brokerage firm Bernstein.