New Delhi: Delhivery has acquired a 99.4 per cent stake in Ecom Express in an all-cash deal worth up to Rs 1,407 crore, a move that reflects ongoing consolidation in India’s logistics sector and the weakening financial position of several tech-era logistics startups.
The board-approved transaction, which is subject to regulatory approvals, will make Ecom Express a subsidiary of Delhivery within six months. Delhivery stated that the acquisition would support operational efficiencies, enhance customer service, and accelerate investments in automation, robotics, drones, and electric vehicles.
However, industry watchers say the timing and nature of the deal suggest it may be more of a financial rescue than a strategic merger. Ecom Express, once considered a major player in e-commerce logistics, has been facing operational challenges in recent years.
Founded in 2012, Ecom Express had drawn significant investor interest in its early years, attracting capital from SoftBank, CDC Group (now British International Investment), and Partners Group. Despite generating Rs 2,607 crore in revenue in FY24, the company has struggled to achieve profitability and scalability amid rising competition and reduced funding.
Its IPO plans, which were being prepared over the past year, were eventually shelved. The delay reportedly came after questions were raised about certain disclosures in the draft red herring prospectus (DRHP).
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