Calling the media reports, factually incorrect and baseless, Delhivery has rejected claims of its acquisition deal with logistics firm Gati. The company made it clear that there have been no discussions going on on the issue. A clarification on the issue will soon be made on the official website, said Delhivery in its filing.
“This is a statement issued w.r.t. news published in media regarding Delhivery in-talks to acquire logistics firm Gati. The company would like to clarify that the news is factually incorrect and baseless. There have been no such discussions whatsoever. This clarification shall also be made available on the website of the Company at www.delhivery.com,” said the company in its stock filling.
The clarification has come a day after, some media reports claimed the acquisition of All Cargo group’s Gati, refering to anonymous sources. Reports also added that the company had been engaged in acquisition talks for more than a month. Earlier, Delhivery had announced its investment in eCommerce Saas company Vinculum.
Gati Limited was acquired by Allcargo in 2020. It is India’s premeir Express Distribution and Supply Chain Management companies. It was founded in 1989. The logistic firm has access to more than 19,800 PIN Codes and 735 of India’s 739 districts.
Days ago, Delhivery reported a net loss of ₹159 crore in the April quarter of the previous financial year. Its loss stood at ₹119.8 crore a year ago in April quarter. Its revenue from operations in the March quarter stood at ₹1,859.6 crore. With this, it fell by 10.2 per cent, against ₹2,071.7 crore in the year-ago period.
There was a decline in the revenue of cross-border services business, even when the company reported healthy volumes. Its revenues were majorly hit by falling global yields in air and ocean freight. Volumes of the Chinese New Year Holidays also impacted its business.