Global private markets investment manager Partners Group Wednesday said it has agreed to acquire a significant equity stake in Delhi-based e-commerce logistics company Ecom Express Private Limited for $250 million.
While the PE firm did not disclose the equity stake it is picking up in the Indian logistics company, according to a report in the Economic Times, the fund will acquire around 35 per cent stake in Ecom Express.
In a statement, Partners Group said that following the acquisition, it will become an equal shareholder in Ecom to existing investor Warburg Pincus, the global private equity firm focused on growth investing.
CDC Group — a development finance institution owned by the UK government — and Ecom’s founders will hold the remaining equity in the company.
Following the investment, Partners Group will work closely with Ecom on several key strategic initiatives, including continued investment in automation, data sciences, and technology to further enhance service quality, efficiency, and productivity across delivery processes. It will also focus on assisting the company expand its product offerings in express logistics and fulfilment services.
“As the market expands, investing in and developing our operations and customer satisfaction will be key to maintaining our market-leading position,” TA Krishnan, co-founder and CEO, Ecom said.
Founded in 2012, Ecom claims to provide logistics services in over 2,650 towns across 27,000+ pin codes in India, covering over 95 per cent of India’s population. Its counts India’s largest e-commerce players among its clients, and delivers almost 1 million shipments per day via 2,800 delivery centres.
The company had raised $36 million in equity financing from UK’s development financial institution CDC Group about a year ago. Prior to that, it had raised $30 million from Warburg Pincus.
Other prominent logistics platforms in India include SoftBank-backed Delhivery, Goldman Sachs-backed BlackBuck, and Warburg-backed Rivigo. CDC is also an investor in Delhivery.
With e-commerce picking post countrywide lockdown due to COVID-19 outbreak, logistics startups have a got a fillip too.
Earlier this week, investment firm Steadview Capital bought shares worth $25 million from an early investor in logistics startup Delhivery through a secondary transaction. The SoftBank-backed logistics unicorn is readying for an initial public offering (IPO) in the next 12-18 months.
Last month, XpressBees has raised $110 million in fresh funding from private equity firms Norwest Venture Partners, Investcorp and Gaja Capital amid the spike in demand for online deliveries.
Rivigo also raised about $11.4 million in a Series G funding round led by existing investor Elevation Capital, formerly known as SAIF Partners the same month.
