Delhivery's Drone Dream Takes Off: MCA Nod for Subsidiary

Delivery by drone? Logistic unicorn Delhivery just got MCA's approval for a new subsidiary focused on drone tech! Could this be the future of logistics in India? Their subsidiary will offer drone delivery services and even manufacture drones! Read on!

New Update

Delhivery, the logistics unicorn, has got approval from the Ministry of Corporate Affairs (MCA) to establish a wholly-owned subsidiary, Delhivery Robotics India Private Limited, which will foray into the realm of freight air transportation. This significant move aligns with Delhivery's ambitious plans to harness drone technology for advanced logistics solutions.

Regulatory Green Light for New Subsidiary

On July 3, Delhivery informed the stock market through a regulatory filing that the MCA had approved the incorporation of Delhivery Robotics India Private Limited. The subsidiary will be involved in outsourcing the manufacturing and procurement of composite airframe components, conducting quality testing, and performing flight trials. It has an authorized share capital of INR 5 crore. 

In a BSE filing, the company stated, “...that the Ministry of Corporate Affairs (MCA) has approved the incorporation of Wholly Owned Subsidiary of the Company in the name and style of 'Delhivery Robotics India Private Limited' on July 03, 2024.”

Transitioning to Aerial Deliveries: Introducing Drone as a Service (DaaS)

In May, Delhivery announced that its new entity would offer Drone as a Service (DaaS) for shipment movement and remote sensing. The subsidiary will not only provide DaaS but will also be involved in the manufacturing, production, and global sales of Unmanned Aerial Vehicles (UAVs). This strategic move positions Delhivery to leverage drone technology to enhance its logistics capabilities and expand its service offerings.

Delhivery's plans to enter the drone segment were first revealed during an earnings call in February 2023. The transition into aerial deliveries will be led by its portfolio company, Transition Robotics. According to co-founder and CEO Sahil Barua, Transition Robotics has developed a fixed-wing drone capable of carrying a 4 kg payload for a distance of 40 km. This innovative technology is expected to revolutionize the logistics industry by offering efficient and cost-effective delivery solutions.

Financial Performance and Strategic Outlook

Despite a challenging financial performance in the March quarter (Q4) of the financial year 2023-24 (FY24), Delhivery remains focused on its strategic growth plans. The company reported a consolidated net loss of INR 69 crore, compared to a consolidated profit after tax of INR 11.7 crore in the preceding quarter. Additionally, its revenue fell by 5% quarter-on-quarter (QoQ) to INR 2,076 crore from INR 2,194.5 crore in Q3.

Delhivery is keen to capture a significant share of India’s growing drone market with its new subsidiary. The Indian drone market is projected to reach $13 billion by 2030. This immense growth potential presents a lucrative opportunity for Delhivery to innovate and expand its logistics services through drone technology.

With MCA’s approval and the promising prospects of the Indian drone market, Delhivery is poised to revolutionize freight transportation and set new benchmarks in the logistics sector.

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