Delhi-based logistics solution provider Ecom Express, on Tuesday (March 9), said that it has received additional funding of $20 Mn (about INR 146 Cr) from existing investors CDC Group, a UK government-owned development finance institution (DFI). The announcement comes a month after the Competition Commission of India (CCI) approved the subscription to securities of the company by the UK-based investor.
CDC Group had previously invested $36 Mn in Ecom Express back in December 2019. Commenting on the follow up round, CDC’s managing director and Asia head, Srini Nagarajan, said that DFI’s additional investment reflects its support for the company’s pan-India expansion. He also noted that the investment would further enhance efforts India is making to meet the UN Sustainable Development Goals of “achieving gender equality and empowerment and promoting sustainable growth and decent work for all”.
Ecom Express is looking to use the funding to create 8,000 new jobs in addition to an initial target of 15,000 roles — prioritising employing women for jobs at delivery centres, fulfilment centres and warehouses across the country. The company will also use the capital for strategic initiatives such as growth driven capital expenditure, working capital requirements, new business initiatives, expansion and potential strategic acquisitions and partnerships.
“This fresh infusion of capital will enable us to further strengthen our network, infrastructure, operations, and technological prowess while assuring support to our next levels of growth. We are looking at a development led impact which includes strengthening our sustainability initiatives, job creation and diversity,” Ecom Express’ cofounder and CEO TA Krishnan said in a media release.
Founded in 2012 by Krishnan, Manju Dhawan, K Satyanarayana and Sanjeev Saxena, Ecom Express provides end-to-end logistics solutions. It facilitates first-mile pickup, processing, network optimisation and last-mile delivery. It operates in over 2,400 towns across more than 25,000 PIN-codes in India. Last month, it invested $11 Mn (INR 80.6 Cr) in Bangladesh’s third-party ecommerce logistics company Paperfly to make its maiden venture outside India.
In the financial year 2020 that ended in March last year, Ecom Express reported a 23% year-on-year increase in its revenue, from INR 1,018 Cr in FY2019 to INR 1,254 Cr. The company’s expenses also grew 42%, from INR 1,148 Cr to INR 1,631 Cr in the same time period. The company had more than doubled its losses, from INR 129.5 Cr in FY2019 to INR 313.5 Cr in FY2020, as per regulatory filings.