[Funding alert] CDC Group invests $36M in logistics startup Ecom Express
UK’s development finance institution and impact investor in South Asia and Africa CDC Group, announced that it has closed a $36 million equity investment in Warburg Pincus-backed tech-enabled logistics startup Ecom Express.
Ecom Express will be using the funds for its network expansion and augmentation. CDC's equity injection will further enable Ecom Express to hire more employees. The logistics firm plans to hire up to 15,000 employees in the next two years. A statement said that Ecom Express will focus on hiring more women to bring diversity.
The fund, as part of CDC’s initiative to address transformational climate urgency measures, will enable Ecom Express to transition a proportion of its distribution fleet to electric vehicles and sponsor a road safety programme for its drivers and fleet operators.
Srini Nagarajan, Managing Director and Head of Asia CDC, said in a press release,
“In Ecom Express, we have a partner company that recognises the vital importance of creating a genuinely sustainable and gender inclusive business. I am delighted that, through our expertise in impact investing in support of the UN’s Sustainable Development Goals, we will be adding value far beyond our capital contribution. We are dedicated to responsibly investing our capital in India, with over $1.7 billion currently committed to local businesses. We have the same amount again to invest over the next few years and look forward to working with many more businesses that are as environmentally and socially conscious as Ecom Express.”
Headquartered in Gurugram, Ecom Express was founded in 2012 by TA Krishnan, Manju Dhawan, K Satyanarayana, and Sanjeev Saxena.
TA Krishnan, Co-founder and Chief Executive Officer of Ecom Express, said, “The infusion of capital will help us further expand our delivery footprint in connecting towns and rural centers across the country. Besides expanding reach, the company plans to invest in technology, deploy advanced parcel sortation systems, strengthen network reliability and infrastructure, and finally, make development impact with job creation, environmentally responsible initiatives and gender diversity. These initiatives will help us deliver superior customer experience and build a scalable and sustainable business. We look forward to leveraging CDC’s expertise in driving businesses with socially responsible and environmental initiatives and the firm’s global network of relationships.”
Ecom Express is renowned for its nationwide express delivery services for the ecommerce industry. The logistics company claims to reach over 90 percent of India’s population, with 85 percent of its presence in Tier II, III and IV cities and hinterlands. Its network empowers and connects sellers and consumers, thereby enabling growth of the ecommerce industry and its surrounding ecosystem.
(Edited by Evelyn Ratnakumar)