Delhivery Acquires A Major Stake In Ecom Express In A Cut-Price Deal For Rs 1,407 Crore

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Delhivery Acquires A Major Stake In Ecom Express In A Cut-Price Deal For Rs 1,407 Crore

Key Highligh

  • Delhivery, a logistics service provider, has finalised a deal to pay Rs 1,407 crore in cash to buy a majority share in Gurugram-based Ecom Express.
  • With this, private equity firms Warburg Pincus, Partners Group, and British International Investment will all fully exit their investments in Ecom Express.
  • Delhivery will be able to expand and solidify its position as a leader in the competitive logistics sector.

Delhivery, a cutting-edge logistics firm, has announced that it has signed a definitive agreement to pay Rs 1,407 crore in cash to acquire a controlling stake in rival Ecom Express. The Gurugram-based Ecom Express, which cancelled its plan to go public and was last valued at more than Rs 7,000 crore in June 2024, is being sold in distress. Read more.

Also Read: ZEVO India Infuses Rs 240 Crores Into Its Logistics Business To Deploy 10,000 EVs

Significance Of Recent Acquisition On Logistics Industry

The Competition Commission of India’s approval and other usual closing requirements must be met before the transaction may be completed. On this deal, Delhivery received legal advice from Shardul Amarchand Mangaldas & Co. and financial and tax diligence advice from Ernst & Young.

Through the agreement, private equity firms British International Investment, Partners Group, and Warburg Pincus will completely withdraw their investments in Ecom Express. The recent acquisition will help Delhivery grow and strengthen its position as a leader in the crowded logistics market.

Official Statements From Delhivery And Ecom Express

K. Satyanarayana, Founder, Ecom Express, said, “Delhivery is among India’s leading fully-integrated logistics service providers with significant scale advantages and will be the ideal shareholder for Ecom Express’ next phase of growth. With this acquisition and its inherent synergies, businesses across India as well as the logistics industry itself will benefit immensely through the combination of two like-minded players.”

Sahil Barua, MD and CEO, Delhivery, said, “The Indian economy requires continuous improvements in cost efficiency, speed and reach of logistics. We believe this acquisition will enable us to service customers of both companies better, through continued bold investments in infrastructure, technology, network and people. The founders and management of Ecom Express have established a high-quality network and team, creating a strong foundation to integrate into Delhivery’s operations.”

About Delhivery Logistics Service Provider

One of the top suppliers of completely integrated logistics services in India is Delhivery. The company offers a broad range of logistics services, including supply chain, technology, cross-border, PTL (partial truckload) freight, TL (truckload), and rapid parcel transportation, through its statewide network that spans more than 18,700 pin codes. Since its foundation, Delhivery has completed over 3.4 billion shipments, and it currently serves over 39,000 clients, including SMEs, other businesses, and e-commerce players of all sizes.