Noida-based logistics automation Startup, Falcon Autotech, has received an undisclosed amount of investment from IPO Market-bound firm Delhivery. The investment signals Delhivery working closely with Falcon Autotech in efforts to build and improve operations involving automation and warehousing.
The details of the transaction remain undisclosed. According to sources possessing intimate knowledge of the transaction, the investment ranges between the US $20-$30 million.
Let us look closely at both firms and determine what the investment holds for either enterprise.
What Do We Know About Delhivery?
Delhivery began as a local logistics service firm in 2011, Delhi. From then on, the company has expanded itself all over India. It provides a wide supply chain service that remains unmatched as well as an end-to-end logistic service.
Small and large scale companies, e-commerce stores, SMEs, businesses, and other brands are the main customers benefiting from Delhivery services. Delhivery operates an impressive chain system of management and delivery operations across its 20 automated sortation centers as well as 124 gateways, and 83 fulfillment centers. These are all located in different parts of India.
Growth estimation of Delhivery in line with its goals now projects towards sustained investment opportunities. Evident by its recently acquired projects, businesses, and brands.
This is, of course, not the first startup investment venture made by Delhivery. In 2019 and 2020, Roadpiper and Aramex were two companies that created headlines after being acquired by Delhivery. Drone startup Transition Robotics Inc., based in California, USA, was acquired by Delhivery last December.
Five founders of Delhivery have listed their shares for sale through IPO. Business ventures will be more in line to raise capital. This also provides an exit door to employees and investors alike.
The Rise of Falcon Autotech
Falcon Autotech is an intra-logistic automation company, already well-known for its warehouse automation services. It has worked and collaborated with e-commerce, warehouse, logistics, and courier industries, much like Delhivery prior to this investment.
Automation solutions handled by Falcon Autotech include warehouse inventory and asset tracking with the help of barcodes and RFID. An optimistic projection in regards to improving abilities through this collaboration with their future-ready solutions was shared by Falcon Autotech CEO, whose startup company is based in Gurugram.
Founded in 2004, Naman Jain, the CEO of Falcon Autotech has taken the startup to new heights. The CEO expressed his views on the partnership of Falcon Autotech and Delhivery as,
“We are delighted to welcome Delhivery as a partner to Falcon. This investment is a testimony to Falcon’s commitment to our customers, our design, technology, and delivery capabilities, and the product roadmap ahead.”
The significant investment coming from Delhivery means we can see Falcon Autotech and their automation solution ideas a lot in the news here.
What Does Delhivery Investing in Falcon Autotech Entail?
Logistic warehousing, automation, technology, design, transportation, delivery capabilities as well as supply chain performance of Delhivery is expected to improve through its collaboration with Falcon Autotech.
Reports highlighted Chief Operating Officer of Delhivery, Ajith Pai’s projections on how they will collaborate with Falcon Autotech. According to him, the collaboration will strengthen the abilities of both businesses.
Mr.Ajith Pai shared his thoughts on the investment and alliance,
“The collaboration with Falcon Autotech strengthens our ability to drive greater speed, precision, and efficiency across our business lines.”
The logistics and supply chain industry awaits to see what the collaboration between Delhivery and Falcon Autotech will bring to the ever-growing market.
The IPO-bound Delhivery is also in the news for filing prospects mentioning a figure of INR 7,460 crore to market regulatory body- Securities and Exchange Board of India, also known as SEBI.