Delhivery, a leading Indian logistics company, has raised concerns over the accuracy of competitor Ecom Express' metrics as presented in the latter's draft initial public offering (IPO) prospectus. In a rare public dispute ahead of Ecom Express' market debut, Delhivery, which is backed by SoftBank and already publicly listed, claims that its business metrics have been misrepresented in comparisons made by Ecom Express in the IPO documents.
According to the 442-page prospectus filed by Ecom Express, the company reported shipping 514.41 million packages in the fiscal year ending March 2024, compared to Delhivery's 740 million packages during the same period. However, Delhivery has argued that the comparison is misleading, alleging that Ecom Express counts returned orders as two separate shipments, thus inflating their figures.
Additionally, Delhivery questioned Ecom Express' cost per shipment (CPS) calculations, suggesting that differences in accounting methods and inflated shipment numbers skew the data. The company also contested Ecom Express' claim of serving 27,000 ZIP codes, pointing out that India has fewer than 19,500 unique ZIP codes.
This dispute arises shortly after Ecom Express, backed by Warburg Pincus, Partners Group, and British International Investment, filed for an IPO seeking to raise $310 million. Delhivery has also taken issue with how Ecom Express presents its service EBITDA and corporate costs, highlighting inconsistencies in the definitions used in the prospectus.
Post a Comment