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IPO-bound Delhivery’s top executives are set to get an appraisal of up to ₹12 crore soon

IPO-bound Delhivery’s top executives are set to get an appraisal of up to ₹12 crore soon
  • The company’s founders Sahil Barua and Kapil Bharati will get appraisals ranging between ₹2.5 crore to ₹10 crore.
  • However, three of Delhivery’s founders are missing from this appraisal process.
  • It spent ₹85.6 crore on employee benefits costs in the financial year 2021.
Top executives and founders of logistics company Delhivery are set to get multi-crore hikes in their salaries pretty soon, the Gurugram-based startup revealed in its draft red herring prospectus (DRHP) filed earlier on Tuesday.

Delhivery — which was valued at $3 billion in March 2021 — intends to raise ₹7,400 crore ($1 billion) with its IPO. The proceeds of this issue will be used to strengthen the company’s technology stack, network and operations.

The company’s DRHP has revealed that Delhivery has planned out appraisal for three of its top executives — Cofounder and Chief Executive Officer (CEO) Sahil Barua, Chief Business Officer (CBO) Sandeep Kumar Barasia and Kapil Bharati, who is the cofounder and chief technology officer (CTO) of Delhivery.

Barua and Bharati’s new salary will be in the range of ₹2.5 crore to ₹10 crore. Meanwhile, Barasia is scheduled to get an increment in the range of ₹4 crore to ₹12 crore.

The appraisal does not include gratuity, medical insurance and other benefits the company offers. There will be additional benefits offered to the three executives on top of this.

Delhivery cofounder’s salary and remuneration have increased in the first quarter of FY2022. Both the cofounders’ — Barua and Bharati — salary for Q1 of FY2022 was nearly as much as the remuneration for the entire FY2021.

Executive

Designation

Salary in financial year ended in March 2021

Salary in April to June quarter

Sahil Barua

Cofounder and CEO

₹4.3 crore

₹3.5 crore

Kapil Bharati

Cofounder and CTO

₹3.9 crore

₹3.4 crore

Sandeep Kumar Barasia

CBO

₹12.9 crore

₹4.7 crore

Amit Agarwal

CFO

₹4.5 crore

₹3.3 crore

Source: Delhivery DRHP
*Note: This includes salary and additional benefits

This appraisal in accordance with the shareholders’ resolution dated October 15 and employment agreement dated October 13. The bonus would finally be decided by Delhivery’s Nomination and Remuneration Committee.

Three of Delhivery’s founders are still missing from the appraisal process

Delhivery was founded by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati and Suraj Saharan in 2011.

Two of the company’s cofounders — Manglani and Tandon — decided to step away from the company, reportedly to meet regulatory requirements before starting their initial public offering (IPO) process.

Cofounder Suraj Saharan, who is the head of New Ventures at Delhivery, was on a sabbatical in the financial year 2021. He did not receive any compensation from the company for fiscal 2021.

Delhivery reported a revenue of ₹806.7 crore in the financial year 2021, with its loss mounting to ₹27.3 crore. It spent ₹85.6 crore on employee benefits costs, which includes salaries and wages, gratuity and more.

The company has over 12,600 employees. Operations and network design is the biggest workforce in Delhivery’s employee mix.

Function

Employees

Operations and network design

10,942

Sales and business development

499

Engineering, data sciences and product

474

Customer services

375

Other corporate functions

275

Total

12,665


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