Delhivery to Acquire Ecom Express for INR 1,407 Crore in Major Logistics Sector Shake-Up The move comes amid Ecom Express' ongoing struggles, including the cancellation of its IPO plans
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In a major consolidation move in the logistics sector, Delhivery on Saturday announced its decision to acquire rival Ecom Express Limited for a consideration not exceeding INR 1,407 crore. The acquisition, approved by Delhivery's board and formalized through a Share Purchase Agreement, will make Ecom Express a subsidiary of the company within six months.
Commenting on the deal, Sahil Barua, MD and CEO of Delhivery, emphasiSed that the acquisition would enable better service for customers through continued investments in infrastructure, technology, and talent. K. Satyanarayana, founder of Ecom Express, echoed this sentiment, stating that Delhivery's scale would unlock the next phase of growth for the company.
The move comes amid Ecom Express' ongoing struggles, including the cancellation of its IPO plans, making this a distress sale for the Gurugram-based firm, which was last valued at over Rs 7,000 crore in June 2024. The deal will also mark a full exit for private equity investors Warburg Pincus, Partners Group, and British International Investment.
Notably, the acquisition follows a dispute last year in which Delhivery alleged Ecom Express misrepresented shipment and profitability metrics in its DRHP. Delhivery clarified that differences in shipment counting methods, customer mix, and parcel weight made comparisons between the two firms inaccurate, with its own average parcel weight nearly double due to a more diversified client base.
The late T.A. Krishnan, who co-founded Ecom Express in 2012 and passed away in October 2023, played a crucial role in shaping India's third-party logistics landscape—a legacy that now integrates into Delhivery's expanding operations.
