Tech3 | Delhivery challenges Ecom Express' DRHP data; Finnova Capital eyes Rs 800 crore boost; and more

Just in: MeitY reminds social media platforms to publish periodic IT Rules compliance report

One quick thing: TCS employees get tax demand notices 

In today’s newsletter: 

• Delhivery challenges Ecom Express' DRHP data
• Finnova Capital eyes Rs 800 crore boost
• Dark store demand to reach 37.6M sq.ft by 2027

Delhivery challenges Ecom Express' DRHP data

Until now, most tech startups that got listed were just one of their kind on the bourses. 

As the next set of them go public, a fierce rivalry can be expected between the new entrants and incumbents — such as Swiggy and Zomato, Ather and Ola Electric, or Ecom Express and Delhivery.

Driving the news: Listed logistics tech unicorn Delhivery has alleged that its IPO-bound rival Ecom Express misrepresented various facts and figures in its draft red herring prospectus (DRHP).

• For example, the DRHP compares the two companies’ shipment volumes, although Delhivery does not count parcel returns as a new shipment while Ecom does so

• Further, it compares an internal profitability metric called ‘Service EBITDA’ although different companies calculate this number in different ways 

Cost conscious 

Delhivery also pointed out that its cost per shipment can’t be compared to Ecom’s because of two reasons:

• First, what is included in the cost of logistics and what is counted as a corporate overhead may be different for the two companies 

• Second, Delhivery’s shipment volumes don’t count returns as separate parcels 

It remains to be seen how Ecom Express — which filed its IPO papers in August for a Rs 2,600 crore issue — responds to these allegations.

Go deeper

Picture credit: Microsoft Copilot

This is a short version of the MCTech3 newsletter. Sign up here to get the full edition in your inbox every evening on weekdays.