Delhivery Challenges Ecom Express IPO Metrics in India

In a rare public confrontation ahead of its competitor's market debut, Indian logistics firm Delhivery has publicly contested the accuracy of the metrics presented by Ecom Express in its draft initial public offering prospectus.

• Delhivery, backed by SoftBank and already publicly listed, claims Ecom Express has inaccurately represented Delhivery's business metrics when drawing comparisons in its IPO filing.

Ecom Express's IPO Prospectus and Delhivery's Claims

Ecom Express, which counts Warburg Pincus, Partners Group, and British International Investment among its backers, submitted a 442-page draft prospectus last month, outlining its plans to raise $310 million through an IPO.

• The prospectus stated that Ecom Express had shipped 514.41 million packages in the fiscal year ended March 2024, while Delhivery handled 740 million during the same period.
• Delhivery, in a filing to stock exchanges, challenged this comparison, arguing that Ecom Express's shipment volume figures are potentially inflated due to their accounting methods.
• Delhivery asserted that what it considers a single shipment is counted as two by its rivals, suggesting that Ecom Express counts returned orders as two shipments.

Dispute Over Cost Per Shipment and Service Area

Delhivery further called out Ecom Express's cost per shipment (CPS) calculations, citing disparities in accounting methods and alleging inflated shipment figures.

• Delhivery also disputed Ecom Express's claim of offering services in 27,000 ZIP codes, pointing out that India has fewer than 19,500 unique ZIP codes.

Delhivery's Concerns Regarding Financial Metrics

Delhivery has also questioned Ecom Express's presentation of service EBITDA and corporate costs, citing a lack of consistent definitions for these metrics in the prospectus.

• This public dispute comes less than a month after Ecom Express filed for its IPO.

Competitive Landscape in the Indian Logistics Sector

This public disagreement underscores the competitive landscape of India's logistics sector, highlighting the importance of accurate data and transparent reporting in the context of IPOs.

• As both companies strive to secure their position in the market, the dispute raises questions about the reliability of the metrics used in IPO filings and the need for greater transparency in the industry.

Ecom Express's Response

Ecom Express did not immediately respond to a request for comment regarding Delhivery's allegations.

• It remains to be seen how this public dispute will impact Ecom Express's IPO plans and the future of both companies in the competitive Indian logistics market.