Ecom Express DRHP: A Look At The Logistic Startup’s Top Guns And Shareholding Pattern

Logistics startup Ecom Express has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for floating its initial public offering (IPO).

The company plans to raise INR 2,600 Cr from the public issue, comprising a fresh issue worth INR 1,284.5 Cr and an offer for sale component of INR 1,315.5 Cr. 

Besides, it aims to raise INR 256.9 Cr through a pre-IPO placement before filing its Red Herring Prospectus (RHP).

The proceeds from the IPO will be used to set up new processing centres with automation and new fulfilment machineries (estimated investment of INR 387.44 Cr), alongside investing in IT equipment (INR 73.71 Cr) and strengthen its cloud infrastructure (INR 239.23 Cr).

Further, the fresh capital will be utilised to repay INR 87.19 Cr worth of loans availed by the company earlier and for general corporate purposes. 

In its DRHP, the startup also revealed its financial numbers for the financial year 2023-24 (FY24). In the fiscal year, the startup managed to trim down its losses to INR 255.87 Cr, down 67% from the INR 428.13 Cr loss it incurred a fiscal prior. 

Meanwhile, its revenue from operations stood at INR 2,609.16 Cr, a 2% increase from the INR 2,553.93 Cr it made in the fiscal prior. Its expenses also rose marginally in the fiscal, growing 0.6% year on year INR 2,921.55 Cr from the INR 2,902.83 Cr it spent in FY23.

“Our losses and negative cash flows may continue in future periods, given the investments expected to be made to grow our business and logistics infrastructure, enhance our supply chain capabilities, develop and launch new solutions and service offerings, expand our customer base in existing markets, penetrate new markets and continue to innovate on our technological platform,” Ecomm Express’ DRHP read.

This is the logistics startup’s second attempt at a public listing. In 2022, the company planned an INR 4,860 Cr IPO but postponed it later due to bearish market conditions.

Ecom Express competes with the likes of Delhivery, Bluedart, Xpressbees and Shadowfax. While Delhivery is listed on the bourses, Shadowfax is said to be planning an IPO of INR 2,500 – 3,000 Cr.

The DRHP filing comes against the backdrop of a growing number of Indian startups either gearing up for or making their market debut in recent times. For instance, FirstCry, Ola Electric and Unicommerce were listed this month.

Last week, coworking startup Smartworks also filed its DRHP with the capital markets regulator SEBI to raise funds through an initial public offering (IPO).

Meanwhile, within just eight months of 2024, we have seen 10 new-age tech companies like Go Digit General Insurance, FirstCry, Unicommerce, TBO Tek, Ola Electric, Awfis, ixigo, Menhood, TAC Security and Trust Fintech already listed on the exchanges.

The 446-page draft document sheds light on Ecom Express shareholding pattern and outlines the people at the helm of the IPO-bound logistics startup.

A Look At Ecom Express’s Cap Table

 

PG Esmeralda Pte. Ltd is the largest shareholder with 6.69 Cr shares, representing 49.76% stake in the company on a fully diluted basis.

Eaglebay Investment Ltd is the second biggest shareholder in Ecom Express with 3.65 Cr shares. It owns 27.13% stake in the company on a fully diluted basis. 

British International Investment plc (erstwhile CDC Group plc) holds a 10.03% stake with 1.3 Cr shares, while cofounder Manju Dhawan owns a 3.60% stake in Ecom Express having 21.7 Lakh shares. 

Ecom Express’s Top Guns

Board Of Directors:

Venkataramanan Anantharaman

Venkataramanan Anantharaman is the Chairman and an Independent Director of Ecom Express. He is currently associated with Criticaleye (Europe) Ltd in the role of board mentor.

Anantharaman has over 30 years of experience in the financial services sector and has held senior positions with several leading institutions, including Bank of America as Vice President – Global Corporate Banking, Deutsche Bank as Director, Standard Chartered Bank as Global Head (Global Industries Group), Credit Suisse as Managing Director, and CDC India Advisors Private Limited as Senior Advisor.

Ajay Chitkara

Ajay Chitkara is the Managing Director and Chief Executive Officer of Ecom Express. He holds a Postgraduate Diploma in Business Management from the Institute of Management Technology, Ghaziabad.

Chitkara was previously associated with Bharti Airtel Limited for over twenty-two years, where he last served as Director and Chief Executive Officer – Airtel Business.

Kotla Satyanarayana

Kotla Satyanarayana is the Whole-time Director of Ecom Express and one of the company’s founders. He has over 35 years of experience in the transportation industry and was associated with Blue Dart Express Limited for over 25 years.

Himanshu Vishnu Nema

Himanshu Vishnu Nema is a Non-Executive Nominee Director of Ecom Express and a nominee of Eaglebay Investment Ltd (one of the Promoters of Ecom Express) on Ecom Express’s Board.

Nema has been associated with Warburg Pincus India Private Limited since 2015, where he is currently serving as a Managing Director on the Board of Directors. He is also serving as a Director on the Board of Directors of Appasamy Associates Private Limited.

Murali Krishnan Nair

Murali Krishnan Nair is a Non-Executive Nominee Director of Ecom Express and a nominee of PG Esmeralda Pte. Ltd. (one of the Promoters of Ecom Express) on the company’s Board.

Nair joined Partners Group (India) Private Limited in 2016 and is currently associated as the Senior Investment Leader. He was previously associated with Multiples Alternative Asset Management Private Limited, Macquarie Capital (India) Private Limited, and Morgan Stanley India Company Private Limited.

Vageesh Gupta

Vageesh Gupta is a Non-Executive Nominee Director of Ecom Express and a nominee of PG Esmeralda Pte. Ltd. (one of the Promoters of Ecom Express) on the company’s Board.

He is currently a Managing Director and Head at Partners Group (India) Private Limited (Mumbai office). He was previously associated with TA Associates Advisory Private Limited, McKinsey & Co., and Sequoia Capital India Advisors Private Limited.

Viraj Sawhney

Viraj Sawhney is a Non-Executive Nominee Director of Ecom Express and a nominee of Eaglebay Investment Ltd on the company’s Board.

Sawhney joined Warburg Pincus India Private Limited in 2005, where he is currently serving as a Managing Director. He was previously associated with McKinsey & Co. He is also serving as a Director on the Board of Directors of Imperial Auto Industries Limited.

Kalpana Kaushik Mazumdar

Kalpana Kaushik Mazumdar is an Independent Director of Ecom Express.

Mazumdar has over 30 years of experience and is currently the Managing Director and Chief Executive Officer of Svakarma Finance Private Limited. She was previously associated with Citibank N.A. India as Senior Vice President. She holds the position of Director at IncValue Advisors Private Limited and is an Independent Director on the Board of Directors of Aavas Financiers Limited.

Rajiv Kapoor

Rajiv Kapoor is an Independent Director of Ecom Express.

He is serving as an Additional Director on the Board of Directors of Oncquest Laboratories Limited. He was previously associated with Uno Minda Limited as Chief Human Resource Officer, Fortis Healthcare Limited as Chief People Officer, and G4S Corporate Services (India) Private Limited as Director HR – India.

Dale Francis Vaz

Dale Francis Vaz is an Independent Director of Ecom Express.

He is currently serving as Managing Director on the Board of Directors of Aaritya Technologies Private Limited and as Director on the Board of Directors of Aaritya Broking Private Limited.

Vaz has over 23 years of experience and was previously associated with Infosys Technologies Limited as Project Manager, Amazon Corporate LLC as Senior Manager – Software Development, Amazon Seller Services Private Limited as Director – Software Development, and Bundl Technologies Private Limited as Chief Technology Officer – General Management.

Leaders At The Helm Of Management:

Vipul Agarwal

Vipul Agarwal is the Chief Financial Officer of Ecom Express.

He has over 26 years of experience and was previously associated with ICRA Limited as Group Chief Financial Officer, Jubilant Oil and Gas Private Limited as Chief Financial Officer, Cairn India Limited as Senior Manager – Finance, and the Shell Group of Companies as Assistant Manager – Accounts.

Atul Gupta

Atul Gupta is the Company Secretary and Compliance Officer of Ecom Express.

He was previously associated with Agarwal Packers and Movers Limited as Company Secretary and Compliance Officer.

Amit Choudhary

Amit Choudhary is the Chief Product and Technology Officer of Ecom Express. He is responsible for the development and execution of product strategies and technological innovations at Ecom Express.

He has more than 20 years of experience and was previously associated with One 97 Communications Limited as Senior Vice President, Helpshift Technologies Private Limited as Chief Product Officer, Expedia Online Travel Services India Private Limited as Senior Director (Technology), Deloitte Consulting India Private Limited as DC Manager, HCL Technologies Limited as Software Engineer (Trainee), and AT&T Labs Inc as a Member of the Technical Staff.

Ashish Sikka

Ashish Sikka is the Chief Strategy Officer of Ecom Express. He is responsible for the corporate strategy function at the company.

He has more than 16 years of experience and was previously associated with Kearney Inc, Kuala Lumpur, and A.T. Kearney Consulting (India) Private Limited as Associate and Knowledge Manager, respectively. He also worked with Propostack Services Private Limited as Business Head and with OYO Hotels and Homes Private Limited as Associate Vice President – Revenue Management and Director – CXO Office.

Vishwachetan Shankaragoud Nadamani

Vishwachetan Shankaragoud Nadamani is the Chief Operating Officer of Ecom Express. He is responsible for managing day-to-day operations, implementing strategic initiatives, and driving operational improvements at Ecom Express.

He has 17 years of experience and was previously associated with Aditya Birla Fashion and Retail Limited as Chief Operating Officer – Indivinity Clothing Retail, and with Cisco Systems (India) Private Limited as Software Engineer.

Krishnananda Bhattacharjya

Krishnananda Bhattacharjya is the Chief Product Officer of Ecom Express. He is responsible for the development of the product portfolio and ensuring that products meet market needs and business objectives.

He was previously associated with Bharat Heavy Electricals Limited as Senior Manager, Locon Solutions Private Limited as Operations Manager, and Delhivery as Senior Manager.

Pankaj Singh

Pankaj Singh is the Chief Commercial Officer of Ecom Express. He is responsible for overseeing commercial strategy, including sales, marketing, and customer relationships at Ecom Express.

He has more than 12 years of experience and was associated with Sharpskill Infra Developers Private Limited as Chief Growth Officer, Multiliving Technologies Private Limited as Founder and Chief Executive Officer, Xanadu Realty Private Limited as Deputy Vice President in Marketing and Sales Strategy, and the Lodha Group of Companies.

Pallavi Tyagi

Pallavi Tyagi is the Chief Marketing Officer of Ecom Express. She is responsible for overseeing marketing campaigns, market research, and the management of marketing teams at Ecom Express.

She has been associated with Ecom Express since May 10, 2024. She has over 20 years of experience and was previously associated with Solutions Integrated Marketing Services Private Limited as Manager – Client Relationship and Bharti Airtel Limited as Vice President – Business (Domestic).

Jitendar Kumar Mohanlal

Jitendar Kumar Mohanlal is the Chief Business Officer of Ecom Express. He is responsible for driving strategic growth by identifying and capitalizing on new business opportunities and ensuring alignment with the overall goals of Ecom Express.

He has been associated with Ecom Express since July 16, 2024. He has more than 16 years of experience and was previously associated with Airtel, where he was designated as Business Head & Vice President of Nxtra at the time of leaving.