SoftBank-backed Delhivery questions metrics in rival Ecom Express’ IPO filing

Indian logistics company Delhivery has publicly questioned the accuracy of information provided by rival Ecom Express in its draft initial public offering prospectus, a rare development in the run-up to the corporate’s market debut.

Delhivery, a SoftBank-backed company that’s already listed on the stock exchange, claims that Ecom Express misrepresented Delhivery’s business metrics while making comparisons in the pre-publication documents.

This 442-page draft prospectus (PDF) last month by Ecom Express says the startup shipped 514.41 million parcels in the fiscal yr ending March 2024, while Delhivery handled 740 million through the same period.

Delhivery alleged in a letter to stock exchanges on Friday that the comparison is flawed, saying what it considers to be a single shipment is counted as two by its rivals, suggesting that Ecom Express’s volume figures are potentially inflated. Delhivery said its rival counts returned orders as two shipments.

Delhivery also raised concerns about Ecom Express’ cost of postage (CPS) calculations, citing discrepancies in accounting methods and allegedly inflated shipment figures.

The SoftBank-backed company also noted that Ecom Express’s claim of offering its services in 27,000 postal codes isn’t true as there are lower than 19,500 unique postal codes in India.

The public dispute comes lower than a month after Ecom Express, whose investors include Warburg Pincus, Partners Group and British International Investment, filed for an IPO searching for to lift $310 million.

Delhivery also questioned Ecom Express’s presentation of its services EBITDA and company expenses, citing a scarcity of consistent definitions of those metrics in the prospectus.

Ecom Express didn’t immediately reply to a request for comment.