[Funding alert] Gurugram logistics startup Ecom Express raises $20M from CDC Group
CDC Group — the UK Government’s development finance institution and impact investor in South Asia and Africa — on Tuesday announced it has invested $20 million in Ecom Express — a Gurugram-based tech-enabled end-to-end logistics solutions provider to the Indian ecommerce industry.
This will be CDC Group's second round of investment in Ecom Express after it had made an initial investment in December 2019.
CDC Group's latest commitment will support the startup to create 8,000 new jobs in addition to an initial target of 15,000 roles — prioritising employing women for jobs at delivery centres, fulfilment centres, and warehouses across the nation, Ecom Express said in a statement.
Besides, the firm will utilise the equity for strategic initiatives, including growth-driven capital expenditure, working capital requirements, new business initiatives, expansions, and potential strategic acquisitions/partnerships.
Speaking on the development, T A Krishnan, Co-founder and CEO, Ecom Express, said,
“This fresh infusion of capital will enable us to further strengthen our network, infrastructure, operations, and technological prowess while assuring support to our next levels of growth. We are looking at a development led impact, which includes strengthening our sustainability initiatives, job creation, and diversity. In CDC, we have a partner, which helps us become socially responsible and contribute to the society at large through these initiatives.”
Recently, Ecom Express invested $11 million (about Rs 80.6 crore) in Bangladesh's largest third-party ecommerce logistics (3PL) firm Paperfly. Through this investment, the startup entered Bangladesh — marking its maiden venture outside India — after having covered the length and breadth of the country, reaching over 1.2 billion people daily.
“Ecom Express is playing a vital role in enabling ecommerce growth and expanding product reach across India. CDC’s investment in the startup reflects our support for the company’s pan-India expansion, and a commitment to channelling our patient capital toward a business that aligns with our development, impact, and sustainability goals,” said Srini Nagarajan, Managing Director and Head of Asia, CDC Group.
“Moreover, we are delighted that this investment will further enhance efforts India is making to meet the UN Sustainable Development Goals of achieving gender equality and empowerment and promoting sustainable growth and decent work for all,” Srini added.
Ecom Express has its presence in all 29 states of India. It operates across 2,650 towns, catering to 27,000+ pin codes.
Edited by Suman Singh