Delhivery, India’s leading logistics unicorn, has received approval from the Ministry of Corporate Affairs (MCA) to establish a wholly-owned subsidiary focused on freight air transportation. The new entity, named Delhivery Robotics India Private Limited, was officially incorporated on July 3, as reported by Inc42.
In its regulatory filing, Delhivery informed the stock market about this significant development. The subsidiary is set to play a pivotal role in the logistics company’s ambitious plans to revolutionize shipment movement using advanced technologies. Delhivery Robotics India Private Limited will outsource the manufacturing and procurement of composite airframe components, as well as quality testing and flight trials. The entity will have an authorized share capital of INR 5 Crore.
In May, Delhivery announced that the new entity would provide Drone as a Service (DaaS) for shipment movement and remote sensing. Additionally, it will engage in the manufacturing, production, and global sale of Unmanned Aerial Vehicles (UAVs).
“During its earning call in February 2023, Delhivery announced its plans to enter the drone segment. It was reported that the transition into aerial deliveries will be helmed by its portfolio company Transition Robotics, which had developed a fixed-wing drone that could carry about 4 kg payload for a distance of 40 km,” according to Sahil Barua, co-founder and CEO of Delhivery.
This strategic move comes as Delhivery navigates financial challenges. In the March quarter (Q4) of the financial year 2023-24 (FY24), the company reported a consolidated net loss of INR 69 crore, a sharp contrast to the consolidated profit after tax of INR 11.7 crore in the preceding quarter. Delhivery’s revenue also saw a 5 percent decline quarter-on-quarter (QoQ), falling to INR 2,076 crore from INR 2,194.5 crore in Q3.
Despite these setbacks, Delhivery is optimistic about its future in the burgeoning drone sector. An earlier report by Inc42 highlighted that the Indian drone market is projected to reach $13 billion by 2030, with an impressive compound annual growth rate (CAGR) of 215 percent between 2022 and 2030.
