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Delhivery To Buy Ecom Express For $165 Mn
- Delhivery, a listed logistics service provider, is acquiring a controlling stake in rival startup Ecom Express for $164.5 million.
- Ecom Express, previously valued at around INR 7,000 Cr, was heading towards a public listing with SEBI approval for a $356 million IPO.
- The acquisition is subject to CCI approval and would make Ecom Express a subsidiary of Delhivery.
- Delhivery aims to enhance operations, service quality, and investments post-acquisition by integrating Ecom Express' network and team.
- Ecom Express transitioned from IPO plans to the acquisition, with its operating revenue rising in FY24 but net losses reducing significantly.
- Ecom Express faced criticisms from Delhivery in its IPO draft papers, alleging incorrect information and discrepancies regarding shipment counts.
- Founded in 2012, Ecom Express focuses on tier II B2C ecommerce logistics and expects growth under Delhivery's ownership.
- Delhivery's acquisition of Ecom Express aligns with its strategy to expand market share, with a focus on quick commerce delivery and drones.
- Delhivery reported revenue growth and profitability in Q3 FY25, while Ecom Express piloted drone delivery services in the Delhi NCR-region.
- Overall, the acquisition signifies Delhivery's strategic move towards strengthening its logistics offerings and market presence in India.
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