Pune-headquartered logistics firm Xpressbees, which helps businesses to deliver products to customers, has tripled its valuation from around $400 million to $1.2 billion after raising $300 million — $100 million in primary and $200 million in secondary — in a new financing round.
With the current round, the company has given a partial exit to Elevation Capital and Alibaba and a full exit to CDH Investments.
Blackstone Growth, TPG Growth, and ChrysCapital co-led the new Series F round. Existing investors — Investcorp and Norwest Venture Partners also participated. The logistics firm has now turned into a unicorn startup. Unicorn Startups are those startups that reaches the valuation of $1 billion. Recently, Elasticrun turned unicorn after raising $300 million in a Series E round.
The current round brings Xpressbees’s all-time raise to over $500 million. Previously, the company had raised $110 million in 2020 as part of its Series E round.
Founded in September 2015, Xpressbees helps internet companies deliver their products to customers across the country. The logistics firms work with several companies like Meesho, Paytm, Lenskart, Xiaomi, Netmeds, ICICI Bank, Bewakoof, to name a few.
According to the company, the raised capital will be utilized to become a full-service logistics organization, support the business in its next phase of growth, product development, and hire talent.
At present, It has its presence across 3,000 cities, serving over 20,000 pin codes, and delivers over 1.5 million packages per day, it said. The company is operating from more than 100 hubs across the country.
Speaking on the development, Amitava Saha, Founder & CEO of Xpressbees, said: “We are excited to welcome our new partners Blackstone Growth, TPG Growth, and ChrysCapital in our growth journey. With their vast network and operational expertise, we believe that they will further fuel our efforts in pursuing newer opportunities and will help expand our footprint.”
“Xpressbees is playing an important role in India’s booming e-commerce sector, which is still at an early stage and has a long runway of development. We look forward to leveraging Blackstone’s deep expertise and global network in logistics and ecommerce to accelerate Xpressbees’s growth,” said Mukesh Mehta, Senior MD at Blackstone Private Equity, based in India.
Akshay Tanna, Partner at TPG Growth, said: “Xpressbees has developed a differentiated, highly scalable, and asset-light operating model that is fully integrated through a customizable tech platform. We look forward to leveraging our deep capabilities in India to support Amitava and his team as they grow the business and build on their leadership position.”
Xpressbees competes with other logistics firms such as Delhivery, BlueDart, BlackBuck, and Ecom Express. Avendus Capital acted as the exclusive financial advisor to Xpressbees on this transaction, it adds.