E-commerce logistics solutions provider Ecom Express has raised Rs 192 crore from its existing investor Warburg Pincus, reports The Economic Times. The publication further reports that the investment was made through the private equity firm’s unit Eaglebay Investment. The development comes ahead of upcoming festive season, which is expected to boost ecommerce shipping in the country.
Previously, Warburg Pincus had invested Rs 850 crore in Ecom Express in June, 2015, to expand in Tier III and IV towns and rural centres, investment in technology, deploying parcel sortation systems, strengthening its network reliability and infrastructure, and to build its second level management team. Before that, Ecom Express had raised Rs 100 crore in funds from Peepul Capital in 2014.
Founded in 2012 by former Blue Dart employees T A Krishnan, K Satyanarayana, Manju Dhawan and Sanjeev Saxena, the company claims to serve 17000 pin codes across 1600 cities, through 1740 delivery centres.
Ecom offers end-to-end logistics solutions such as such as order fulfilment, reverse logistics, Ecom Network Services (ENS), cross-border services (EXS), Ecom Branded Services (EBS) to e-commerce companies. It also provides fulfillment solutions to its customers. In March, the company launched its 500,000 sq. ft. fullfillment centre ‘INDIA 1’ in Bilaspur, Haryana NCR region.
Ecom Express’s clients include Flipkart, Amazon, Snapdeal, Voonik, Rediff, Limeroad, Paytm- to name a few.
The ecommerce logistics segment is seeing a lot of competition, with ecom giants strengthening their own logistics arm, and old and new players getting investments this year.
– Note that, Ecom Express’s competitor Rivigo had also raised $75 million from an affiliate of Warburg Pincus in November last year.
-In June, Amazon India’s logistics arm Amazon Transportation Services (ATS) got an infusion Rs 207 crore from Singapore-based Amazon Corporate Holdings and Amazon Malaysia. It also received Rs 67 crore from the parent company in September 2016. Note that ATS is looking to get another Rs 400 crore infusion from the parent company to expand its logistics footprint in the country.
-Ecom Express also competes with likes of Locus, Loadshare, Blackbuck, and also NSE-listed Gati, which invested in Browntape.com in November, which is a service which enables vendors to sell on multiple marketplaces with the same pool of inventory, and give them access to data, marketing and technology.