Ecom Express Resignations Amid Delhivery Acquisition

Ecom Express has experienced notable resignations as approximately 150 mid-level and regional operations staff have left the company. This action occurs shortly before its anticipated acquisition by logistics giant Delhivery.

Context of Resignations at Ecom Express

As reported by Mint, these voluntary resignations precede the expected approval from the Competition Commission of India (CCI), anticipated within the next 45 days. Concerns regarding role redundancies and operational restructuring following the merger with Delhivery likely influenced these departures.

Leadership Changes in Ecom Express

According to the report, Ecom Express’s CEO, Ajay Chitkara, along with other senior management, may also depart post-regulatory approval.

Details on the Acquisition

This transition follows Delhivery’s plan to acquire a 99.4% stake in Ecom Express Limited for a total cash consideration of up to Rs 1,407 crore (approximately $169.5 million). Prior to this acquisition, Ecom Express had secured over $290 million in funding.

About Ecom Express

Founded in 2012 and based in Gurugram, Ecom Express operates as a full-stack, technology-driven logistics company.

Financial Performance

In terms of financials, Ecom Express reported revenue from operations amounting to Rs 1,912 crore during the first three quarters of FY25, as per an internal document accessed by Startup Superb. For comparison, the company achieved Rs 2,653 crore in revenue for the full fiscal year FY24.

Delhivery has chosen not to comment on these developments.