Delhivery to acquire Ecom Express for ₹1,400 crore

Delhivery announced that it has signed a definitive agreement to acquire a controlling stake in Ecom Express for a cash consideration of ₹1,400 crore from its shareholders.

Sahil Barua, MD and CEO, Delhivery 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. The founders and management of Ecom Express have established a high quality network and team, creating a strong foundation to integrate into Delhivery’s operations.”

K. Satyanarayana, founder - Ecom Express said, “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. With this acquisition and its inherent synergies, businesses across India as well as the logistics industry itself will benefit immensely through the combination of two like-minded players.”

With its nationwide network covering over 18,700 pin codes, Delhivery provides a wide range of logistics services such as express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services.

Ecom Express was incorporated in 2012 by Manju Dhawan, K. Satyanarayana, Late T. A. Krishnan and Late. Sanjeev Saxena. The company provides first-mile pickup, processing, network operation, last mile delivery, reverse logistics and returns management under its flagship service – Ecom Express Services.

The sellers include a consortium of investors — Warburg Pincus, British International Investment (formerly CDC Group), Partners Group, and the founders of Ecom Express. These investors had backed the company during its rapid growth phase. Warburg Pincus, the largest shareholder, first invested in the company in 2015.

In August 2024, Ecom Express filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO). However, in the months following the DRHP filing, the company witnessed senior-level exits and layoffs, leading to a freeze on its IPO ambitions. The planned public listing was shelved amid intensifying market competition and operational challenges, eventually leading to the sale.

The completion of the transaction is subject to approval from the Competition Commission of India, and customary closing conditions.

Shardul Amarchand Mangaldas & Co. acted as the legal advisor and Ernst & Young acted as the financial and tax diligence advisor to Delhivery on this transaction.