Acquisition of Ecom Express by Delhivery Set to Cost INR 1,400 Cr

Delhivery Ltd, a logistics services company, stated on 5 April that it would acquire Ecom Express Ltd. This acquisition deal will cost Delhivery around INR 1,400 crore in cash. The step is taken in order to expand operations of Delhivery. The business announced in a regulatory filing that it has finalised a deal to buy a majority share in Ecom Express Ltd. from its stockholders for about INR 1,400 crore in cash. With a purchase price of no more than INR 1,407 crore, the board of the company authorised the purchase of shares of Ecom Express Ltd that represented at least 99.4% of the issued and paid-up share capital, fully diluted.

The Deal Gets the Nod from Ecom’s Board

The board has given its approval for the company, Ecom Express, and its shareholders to execute a share purchase agreement as well as other required paperwork. It is anticipated that the transaction would be finalised in the upcoming six months. Ecom Express, a company situated in Gurugram, made INR 2,607.3 crore in the fiscal year 2023–24 compared to INR 2,548.1 crore the year before. Sahil Barua, MD and CEO of Delhivery, commented on the agreement, stating that the Indian economy needs ongoing advancements in logistics speed, reach, and cost-effectiveness. Delhivery is certain that this acquisition would allow it to better serve the clients of both businesses by making more daring investments in people, technology, networks, and infrastructure. He continued by saying that Ecom Express's founders and management have built a solid network and team that will be easy to incorporate into Delhivery's operations. Delhivery will be the perfect stakeholder for Ecom Express's next stage of expansion, according to K. Satyanarayana, the company's founder.

Waiting for CCI’s Approval

The Competition Commission of India's clearance and the usual closing conditions must be met before the deal may be completed. Founded in August 2012, Ecom Express Ltd. offers comprehensive logistics solutions powered by technology. According to the company, this acquisition will increase Delhivery's scale and fortify its value proposition to customers. According to a Delhivery official statement, the larger scale brought about by this acquisition should enable Delhivery to make more efficient investments in enhancing service quality through network expansion and network quality enhancements. Delhivery offers a broad range of logistics services, including supply chain, technology, cross-border, PTL, TL, and rapid parcel transportation, through its statewide network that spans more than 18,700 pin codes. According to the filing, Delhivery has completed more than 3.4 billion shipments since its founding and serves more than 39,000 clients, including SMEs, big and small e-commerce players, and other businesses and brands.