E-commerce logistics solutions provider Ecom Express has confirmed that it will raise Rs 850 crore from private equity firm Warburg Pincus, reports VCCircle. The funding will go towards expansion in Tier III and IV towns and rural centres, investment in technology, deploying parcel sortation systems and strengthening its network reliability and infrastructure. It will also work on building its second level management team.
Ecom Express had raised Rs 100 crore in funds from Peepul Capital, in September last year. The company had said then that it would use the funds to grow its distribution capabilities to reach over 800 locations over the next two years and employ around 10,000 employees in the next five. It had also said that it would focus its expansions across locations in North, South and West India while expanding its distributional capabilities in East and North East of the country. In 2013, it had raised an undisclosed amount of angel funding from Oliphans Capital and others.
Founded in 2012 by T A Krishnan, K Satyanarayana, Manju Dhawan and Sanjeev Saxena, the company claims to serve over 2,800 pin codes through 320 delivery centres and around 8,000 employees across 210 cities.
Ecom offers logistics services primarily to e-commerce ventures, including prepaid services for when shipment is paid for, cash on delivery services where it collects money when delivering products, cash before delivery services where it collects money first then dispatches the product, dropship services when it collects shipments on behalf of the shipper and reverse logistics services where it returns a delivered shipment back to the shipper.
- Last month, e-commerce logistics services provider Delhivery raised $85 million in a Series D round of funding led by Tiger Global Management with participation from existing investors including Multiples Alternate Asset Management, Nexus Venture Partners and Times Internet Limited.
- In March, e-commerce player Snapdeal, in a bid to strengthen its supply chain infrastructure, picked up a minority stake in logistics firm GoJavas. Snapdeal did not reveal the size of the investment. Snapdeal had launched a fulfillment service for sellers listing their products on its platform called SafeShip, in June 2013.
- Flipkart opened up its logistics arm eKart Logistics to other operators in February last year.
- The same month, JustDial announced integrating logistics services that would offer its merchants the ability to deliver products purchased via its marketplace.
- In April last year Amazon India had started working with kirana stores in Bangalore for in-store pick up of products ordered from its website. The company had launched its third-party logistics service in India in November 2013.
- In August last year, logistics solution provider Holisol Logistics had received $1.5 million in investment from Sundeep Bhandari through his company Datavision.
- The same month, mail and logistics group Deutsche Post DHL (DPDHL) chose India to pilot its e-commerce logistics business model for Asia-Pacific and will run the program through its subsidiary Blue Dart Express.
- Kartrocket, which partners with Ecom, has its own shipping solution, Shiprocket that it had opened to all e-commerce ventures in December 2013.
- In November 2013, courier and logistics company DTDC launched an e-commerce marketplace focused on Indians who want to send gifts to people living abroad. In March the same year, it had launched a logistics solution for e-commerce retailers called DotZot.
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