E-commerce logistics solutions provider Ecom Express has raised INR 192 crore from its existing investor Warburg Pincus. It is reported that the investment was made through the private equity firm’s unit Eaglebay Investment. The development is expected to boost e-commerce shipping in the country.
Headquartered in Delhi, Ecom Express Private Limited was founded in 2012 by former Blue Dart employees T A Krishnan, K Satyanarayana, Manju Dhawan and Sanjeev Saxena. It is an end-to-end logistics solutions provider with a focus on speed, safe and reliable nationwide express delivery services to e-commerce industry.
At that time T A Krishnan, Co-founder and CEO – Ecom Express said:
It is extremely difficult for ecommerce companies to reach the interiors of India where demand is picking up. While it is relatively easy to cover the Metros and Tier-I cities, expanding logistics coverage to smaller towns and villages will always remain a challenge and we have been very successful in putting sustainable solutions around this.
He further added that:
Our strategy is to rapidly increase our footprint in interior locations to drive ecommerce volume growth. We are looking to implement full-coverage in another five states by the end of the year taking it to a total of 17 States.
The company has established its presence in the industry due to a differentiated business model which is built on delivery service capability, scalability, customization and sustainability. The company uses its cutting-edge technology and automation solutions to enable first mile pickup, processing, network optimization and last mile delivery.
The company claims to serve 17000 pin codes across 1600 cities, through 1740 delivery centres. The company has a team size of over 14,000. With 50 long-haul and over 175 short-haul services, the company is able to handle 80 per cent of its entire volume of shipments by its own network. It also provides fulfillment solutions for e-commerce companies.
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.
Ecom Express also competes with likes of Locus, Loadshare, Blackbuck, and also NSE-listed Gati.