Exclusive: IPO-Bound Logistics Startup Ecom Express Converts Into Public Company

IPO-bound Delhi-based logistics startup Ecom Express has converted into a public company. The startup has passed a resolution on October 22, where the company’s shareholders approved the company’s conversion from Ecom Express Private Limited to Ecom Express Limited.

Ideally, a startup converts itself into a public company when it intends to list itself on the stock exchange. 

People aware of the matter told Inc42 that the startup intends to raise funds through IPO at $1.5 Bn to -$1.8 Bn valuation

Interestingly, the development comes on the day another logistics unicorn Delhivery filed its DRHP  (a month after converting into a public company) for INR 7,640 Cr IPO. Delhivery’s offer includes a fresh issue of shares worth up to INR 5,000 Cr and an offer-for-sale of up to INR 2,460 Cr.

Earlier this year, the Delhi-based startup had raised $20 Mn from its existing investor CDC Group. Ecom Express is backed by Warburg Pincus, Partners Group, Peepul Capital. To date, it has raised close to $450 Mn across six rounds.

Founded in 2012 by TA 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. In February this year, 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 FY20, it posted a revenue of INR 1,018 Cr, a 23% increase compared to INR 1,254 Cr in FY19. Its expenses grew by 42% from INR 1,148 Cr to INR 1,631 Cr in FY20. It posted a loss of INR 313.5 Cr in FY20, a sharp rise from INR 129.5 Cr in FY 19.

Ecom Express now joins the long lists of Indian tech startups that want to taste their luck in the public market. The list includes Delhivery, Snapdeal, Capillary Technologies, among others. In the last one week alone, Nykaa, Fino Payments, and Policybazaar have already gone public.