Ecom Express, a logistics solutions provider to Indian ecommerce companies, on Wednesday, said that private equity firm Warburg Pincus, has committed to invest Rs 850 crore in the company.
Delhi-headquartered Ecom Express was founded in 2012 and currently services more than 2,800 pin-codes through over 320 delivery centres and 8,000 employees in about 210 cities. It expects to handle about 50 million packages this year.
“The infusion of capital will help us expand our delivery footprint in Tier III and Tier IV towns and rural centres across the country,” said TA Krishnan, chief executive officer, Ecom Express, in a statement.
Besides expanding reach, the company plans to invest in technology, deploy advanced parcel classification systems, strengthen network reliability and infrastructure and build the second-level management team.
“There is a significant need for logistics capacity in India to serve the requirements of the ecommerce industry and businesses are seeking reliable service providers who can scale up with them,” said Viraj Sawhney, managing director of Warburg Pincus, India.
Logistics companies that are focused on serving ecommerce firms are of huge interest to private equity investors. In May, Delhivery, an ecommerce logistics provider, raised $85 million led by Tiger Global Management with participation from existing investors, Multiples Alternate Asset Management, Nexus Venture Partners and Times Internet Ltd. This funding round for Delhivery came just eight months after it raised Rs 210 crore led by Multiples Alternate Asset Management.
In September, Ecom Express had raised about Rs 100 crore from another PE firm, Peepul Capital.
These transactions underscore a silent trend in an ever-expanding ecommerce market: The growing importance of enablers who can make or break an online business.
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