[Funding alert] Alibaba to invest $10M in logistics startup XpressBees
Pune-based logistics startup XpressBees is set to raise $10 million from its existing investor, Alibaba, in its Series D round. The Chinese conglomerate invested over Rs 225 crore in XpressBees in 2018.
XpressBees will be using the additional funds for growth and expansion of its business. According to the filings with Registrar of Companies, as accessed by YourStory , XpressBees has resolved to raise the capital by issuing compulsory convertible cumulative preference shares (CCPS) or Subscription Shares.
XpressBees was founded by Amitava Shah (also Cofounder of FirstCry), and Supam Maheshwari in 2012. The last time YourStory spoke with XpressBees, it was delivering to more than 10,000 pincodes with 53 hubs and more than 1,300 service centres.
XpressBees provides logistics services to companies including Paytm, Flipkart, Snapdeal and Reliance. It offers reverse logistics, real-time tracking and multiple payment collection options.
Xpressbees spun out of FirstCry but separated as an entity in 2015. Operated by BusyBees Logistics Solutions, Xpressbees has previously raised funds from SAIF Partners, Paytm, Valiant Capital, Chiratae Ventures, Vertex Ventures, and IDG Ventures, among other investors. The logistics company is also backed by debt capital firm InnoVen Capital.
According to the RoC filings, XpressBees is allocating 9,317 Series D1 CCPS worth $1,037 each.
Prior to this round, XpressBees had raised six funding rounds, worth $157.6 million.
The Indian logistics sector is growing at a rapid pace. It is expected to reach $215 billion by 2020. Other logistics startups like Blackbuck, Rivigo, and Locus raised funding this year. Marquee investors including Tiger Global and Falcon Edge have invested in the logistics sector. In fact, Gurugram-based Delhivery became the first Indian logistics startup to enter the unicorn club. The company raised $350 million from SoftBank Group alone.
Alibaba entered the Indian startup ecosystem as an investor in 2014, with 48 deals. It has invested in biggies including Delhi NCR-based unicorn Paytm and e-grocery startup Bigbasket.