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Delhi based E-commerce logistics company, Ecom Express has raised $30 million from its existing investor Warburg Pincus. The investment was done through one of its units, Eaglebay Investment. In June 2015, Warburg Pincus also invested $133 million from an affiliate.
A ‘Supplemental Agreement’ was made on September 8 according to RoC filings. 609,524 compulsorily c convertible preference shares were issued and allotted to Eaglebay Investment. All the shares were allotted at about $50 (INR 3,150) per share which cumulated to an amount of around $30 million (INR 192 crore).
Ecom Express, founded by T A Krishnan, Manju Dhawan, K Satyanarayana and Sanjeev Saxena in 2012, provides end to end logistics solutions the booming E-commerce industry in India. Currently, Ecom Express delivers to over 11,000 pin codes all over India. It administers over 1,200 delivery centers and 33 transit hubs.
Until now, the Delhi-based startup only handled last-mile deliveries. However, recently, they have also started receiving, packaging and shipping products any customer orders. It provides various important services like Cash-on-delivery, reverse logistics, drop ship service, and same-day delivery. Amazon, Flipkart, Snapdeal, Paytm, Shopclues, Infibeam are some of their famous clients among the rest.
With the newly acquired funding, Ecom Express will try to stretch its extent to 20,000 pin codes by the end of 2019.
Indian E-Commerce Logistics Market
The Indian logistics space is seeing a prominent increase in acquiring hefty financing from various investors. In March 2017, Sands Capital along with existing investors, Accel Partners, Tiger Global, Apoletto and Flipkart invested $70 million in Blackbuck from a Series C funding round.
Warburg Pincus has made some notable investments in the logistics space before. It invested in a Gurgaon based logistics startup Rivigo to acquire a minority stake. It also invested a hefty amount of $125 million in Stellar Value Chain Solutions in August 2016. The New York based private equity firm has over $40 billion in Private Equity assets and its portfolio has more than 120 companies. It has invested over $4 billion in around 50 Indian companies. Recently, it also joined up with Rangu Salgame of Princeton Growth Ventures and committed to $300 million to explore opportunities in various media and telecom companies.
