Exclusive: Ecom Express In Talks To Raise INR 350-400 Cr From Existing Investors

Delhi NCR-based logistics startup Ecom Express is in talks with existing investors Warburg Pincus, CDC Group, and Partners Group to raise a funding of about INR 350-400 Cr, sources told Inc42.

The discussions are in the final stages and the funding round could catapult Ecom Express’ valuation to over $1 Bn, making it the latest entrant to the country’s unicorn club, the sources said.

The startup intends to utilise the fresh funds to double down on reverse logistics and same-day delivery.

“The company will focus more on newer products in reverse logistics and same delivery. While reverse logistics has a better yield, there’s a growing demand for same day delivery in Tier-I and beyond cities,” one of the sources said. 

Reverse logistics is the process of moving goods back upstream from their typical final destination in the supply chain for various purposes such as returns, repairs, recycling, or disposal.

A detailed questionnaire sent to Ecom Express on the funding round didn’t elicit any response till the time of publishing this story. 

While Ecom Express is yet to file its financial statements for the financial year 2023-24 (FY24), Inc42 has learnt from sources that the startup turned EBITDA profitable during the year.

Founded in 2012 by Late TA Krishnan, Manju Dhawan, K Satyanarayana and Sanjeev Saxena, Ecom Express claims to have 3,000 delivery centres spanning 9.6 Mn sq. ft. of space. The logistics startup delivers packages to 27,000 pin codes in 2,700 cities and towns across the country.

The latest development comes almost a month after Inc42 exclusively reported that Ecom Express had partnered Skye Air for drone deliveries in Delhi NCR.

The startup last raised $39 Mn from Warburg Pincus, CDC Group, and Partners Group in 2022.

Last year, Ecom express appointed Ajit Chitkara as its managing director and chief executive officer following the demise of TA Krishnan. Earlier this year, it also roped in former founder of proptech venture Multiliving Technologies, Pankaj Singh, as the chief commercial officer (CCO). Last month, former Airtel vice president, product Pallavi Tyagi joined Ecom Express as the chief marketing officer (CMO). 

Ecom Express has raised a total funding of about $300 Mn till date and competes against the likes of publicly listed Delhivery, Xpressbees, and Shiprocket.