Delhivery Limited Announces Acquisition of Ecom Express Limited

Delhivery Limited has revealed its plan to secure a significant 99.4% equity interest in Ecom Express Limited, a competing logistics solutions provider, with a cash investment of up to Rs 1,407 crore ($169.5 million). This acquisition stands out as one of the most significant consolidations within the logistics sector. The transaction is classified as distressed, as Ecom Express had been preparing to enter the public market at a projected valuation of $700 million.

During a board meeting convened earlier today, the deal received approval, and Delhivery confirmed that a Share Purchase Agreement (SPA) has been executed with Ecom Express and its stakeholders. Following the successful completion of this acquisition, Ecom Express will function as a subsidiary under the Delhivery umbrella.

About Ecom Express Limited

Established in 2012 and based in Gurugram, Ecom Express is a comprehensive, technology-focused logistics firm. For the fiscal year ending March 31, 2024, the company reported impressive revenue figures amounting to Rs 2,607 crore ($314 million), an increase from Rs 2,548 crore in FY23.

Goals of the Acquisition

The primary objective of this acquisition is to enhance scale, operational efficiency, and customer service through strategic investments in network automation, electric vehicles, cutting-edge technologies such as robotics and drones, and ongoing research and development. Delhivery also views this acquisition as a driving force for growth across the wider vendor ecosystem, facilitating suppliers in expanding their investments in fleet management, automation, and innovative solutions.

Timeline for Completion

The completion of this acquisition is anticipated to occur within six months, contingent upon the stipulations outlined in the Share Purchase Agreement. Delhivery clarified that this transaction does not fall under the category of a related party transaction, given that there are no shared promoters or group connections between the two companies.

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