Exclusive: Logistics Startup Ecom Express To Raise INR 4,860 Cr Via IPO

Ecom Express Eyes IPO, Gets Board Approval For INR 2,600 Cr Public Issue

SUMMARY

Delhi-based logistics startup Ecom Express’ offer will include fresh offer worth INR 2,160 Cr

The startup’s investors will also look forward to offloading shares worth INR 2,700 Cr

The startup in consultation with BRLMs will look forward to an pre-IPO placement aggregating to INR 360 Cr

IPO-bound logistics startup Ecom Express which is heading for an initial public offering has finalised its IPO offer. The Delhi-based logistics startup will be issuing a fresh issue size worth of INR 2,160 Cr. The startup’s offer will also include offer-for-sale worth INR 2,700 Cr by existing shareholders.

The board of Ecom Express in a meeting held on December 9, 2021 has further finalised that the startup in consultation with BRLMS (Book Running Lead Manager(s)) may decide to raise an pre-IPO place round aggregating to INR 360 Cr.

However, its unclear who all will be offloading their shares as part of the IPO.

Earlier, Inc42 sources had informed us that the startup intends to raise funds at $1.5 Bn to -$1.8 Bn valuation. The company also intends to raise INR 360 Cr in Pre-IPO placement, the filings revealed.

In October last year, Inc42 had exclusively reported about Ecom Express converting into a public company.

Last year, the logistics startup had raised $20 Mn from its existing investor CDC Group. It also counts Warburg Pincus, Partners Group, Peepul Capital amongst its investors. 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.

The startup operates in 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 the financial year ending on March 31, 2021, Ecom Express had posted a revenue of INR 1,622 Cr, with a profit of INR 57 Cr. The logistics joins the likes of EaseMyTrip, CarTrade, Nykaa, ixigo, and boAt who are profitable and have gone or are heading towards a public listing.

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 IPO details comes just two weeks after Delhivery received SEBI nod for its 7,640 Cr IPO.

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