Exclusive: IPO-Bound Ecom Express Raises $39 Mn From Warburg Pincus, Partners Group

IPO-bound logistics startup Ecom Express has raised $39 Mn in funding from Warburg Pincus, CDC Group and Partners Group.

According to the startup’s latest regulatory filings accessed by Inc42, it allotted a total of 3,51,117 Series IV compulsorily convertible preference shares (CCPS) to its existing investors mentioned above.

The fresh round was led by Partners Group through its entity PG Esmeralda Pte Ltd, which infused $29 Mn (INR 234 Cr) in exchange for 2,64,579 Series IV CCPS. It was followed by Warburg Pincus which pumped in $5.8 Mn through Eaglebay Investment Ltd for 52,195 Series IV CCPS. UK-based British International  Investment Plc, which was formerly called CDC Group, pumped in $3.7 Mn for 33,623 CCPS.

The development comes days after reports said that the Gurugram-based logistics startup was considering stalling its IPO plans amidst market volatility.

Earlier, Inc42 had exclusively reported that the startup was gearing for an INR 4,860 Cr initial public offering.

As per media reports, the startup is now in talks with US-based ecommerce giant Amazon to sell 51% stake for roughly $500 Mn. It must be noted that Amazon doesn’t have its own logistics services in India.

Ecom Express reported a profit of INR 43.4 Cr in the financial year 2020-21 (FY21) as against a loss of INR 313.5 Cr in FY20. Its consolidated revenue jumped 33% to INR 1,627 Cr from INR 1,254 Cr in FY20

The startup witnessed a minor drop in its expense to INR 1,613.5 Cr during the year from INR 1,631 Cr in FY20. However, employee benefit expenses rose by more than 20% to INR 457.7 Cr from INR 376.3 Cr in FY20. 

Ecom Express would have become the second Indian logistics startup after Delhivery to go public if it had gone ahead with its IPO plans. However, after the new fundraise, it is unclear if it still intends to go public.

Ecom Express competes with the likes of Ekart Logistics, Delhivery, Xpressbees, Shiprocket in the Indian logistics market.