Logistics unicorn Delhivery acquires rival Ecom Express for Rs 1,407 Cr
Delhivery's acquisition of Ecom Express is expected to expand the scale of operations for the logistics company.
Delhivery, one of the leading new-age logistics companies, has acquired its rival firm Ecom Express for a cash consideration of Rs 1,407 crore.
In a notice to the stock exchanges on Saturday, Delhivery said the acquisition of Ecom Express will provide it with scale and enhance its value proposition in the market. “Logistics is a scale-driven business where economies of scale lead to higher efficiencies, enabling players to provide higher quality services at more competitive prices,” it said.
Ecom Express was founded in 2012, with its headquarters in Gurugram, and positioned itself as a logistics service provider for the retail and ecommerce industry. It reported a revenue of Rs 2,607.3 crore for FY24.
This logistics company also had plans to go for an initial public offering (IPO) with a proposed size of around Rs 2,600 crore, and it had received approval from the market regulator, SEBI. However, it deferred IPO plans citing market conditions. It also reportedly undertook employee layoffs.
On the other hand, Delhivery, founded in 2011, became the first Indian logistics startup to get listed on the stock markets in 2022.
On the acquisition, Delhivery MD and CEO Sahil Barua said, “The Indian economy requires continuous improvements in cost efficiency, speed and reach of logistics. We believe this acquisition will enable us to service customers of both companies better, through continued bold investments in infrastructure, technology, network and people.”
Delhivery reported a 114% year-on-year (YoY) increase in its consolidated profit, reaching Rs 25 crore in the third quarter of FY25, compared with Rs 11.7 crore earned in the same period last year, when it turned profitable for the first time since its 2022 listing.
Revenue from operations rose 8% YoY to Rs 2,378 crore in the quarter ended December 2024, compared with Rs 2,194 crore in Q3 FY24. In the preceding quarter, revenue was Rs 2,190 crore. The company’s margin stood at 4.3% for Q3, down from 5% a year earlier.
“Delhivery is among India’s leading fully-integrated logistics service providers with significant scale advantages and will be the ideal shareholder for Ecom Express’ next phase of growth,” Ecom Express Founder K Satyanarayana noted in a statement.
(The copy was updated with quotes.)
Edited by Kanishk Singh