Delhivery to acquire rival Ecom Express for Rs 1,407 crore in all-cash deal

The acquisition will enable Delhivery to service customers of both companies better through investments in infrastructure, technology, network and people, according to the company's CEO

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Logistics and supply chain company Delhivery Limited has signed a definitive agreement to acquire a controlling stake in its rival Ecom Express for a cash consideration of Rs 1,407 crore. 

 

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,” said Barua.

 

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,” said Satyanarayana.

 

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 for this transaction.

 

Ecom Express is a leading end-to-end technology enabled logistics solutions provider to the Indian retail and e-commerce industry. The company 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 company also offers a complete suite of supply chain, storage, and fulfillment solutions under its service line – Ecom Fulfillment Services. The company has delivered nearly 2 billion shipments to 97 per cent of Indian households since its inception.

 

The acquisition is expected to provide a big boost to Delhivery’s services such as express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology solutions. Delhivery has a nationwide network covering over 18,700 pin codes. It has successfully fulfilled over 3.4 billion shipments since inception and works with over 39,000 customers, including large and small e-commerce participants, SMEs, and other enterprises and brands.