Gurugram-based Delhivery to acquire rival Ecom Express for Rs 1,400 crore in cash

Gurugram-based logistics company Delhivery said it will acquire a controlling stake in its long-time rival Ecom Express from its shareholders for Rs 1,400 crore in cash.

The acquisition comes two months after the company appointed Vani Venkatesh as Chief Business Officer.

Ecom Express' market presence

Founded in 2012 by Manju Dhawan, K. Satyanarayana, Late T. A. Krishnan and Late. Sanjeev Saxena, Ecom Express provides first-mile pickup, processing, network operation, last-mile delivery, reverse logistics and returns management under its flagship service – Ecom Express Services. 

It also offers a complete suite of supply chain, storage, and fulfilment solutions under its service line – Ecom Fulfillment Services. Ecom claims to have delivered nearly 2 billion shipments to 97% of Indian households since its inception.

On the other hand, Delhivery provides a wide range of logistics services such as express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services. It also claims to have fulfilled over 3.4 billion shipments since its inception and works with over 39,000+ customers, including large and small e-commerce participants, SMEs, and other enterprises and brands.

Leadership comments

“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 operation," said Sahil Barua, MD and CEO.

K. Satyanarayana, founder - of 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.”

The completion of the transaction is subject to approval from the Competition Commission of India, and customary closing conditions.