Delhivery to acquire logistics rival firm Ecom Express for ₹1,407 crore

Upon completion of the acquisition, Ecom Express will become a subsidiary of Delhivery. The transaction is expected to be completed in six months

Logistics company Delhivery has announced its decision to acquire rival firm Ecom Express Limited for a total sum not exceeding ₹1,407 crore. The acquisition, once completed, will make Ecom Express a subsidiary of Delhivery, subject to regulatory approvals and customary closing conditions, the company said in an exchange filing on Saturday.

 

In a regulatory filing, Delhivery stated, "The board has approved the execution of a share purchase agreement between the company, Ecom Express, and its shareholders, along with other necessary transaction documents. Upon completion of the acquisition, Ecom Express will become a subsidiary of Delhivery."

 

Commenting on the acquisition, Managing Director and CEO of Delhivery 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."

 

 

"This acquisition marks a new growth phase for Ecom Express, and the combined strengths of both companies will drive substantial benefits for businesses across India and the logistics industry as a whole," Ecom Express founder K Satyanarayana added.

 

Ecomm acquisition to be completed in six months

The transaction remains subject to approval from the Competition Commission of India. Delhivery expects to complete the acquisition within six months from the execution of the share purchase agreement, although this timeframe may be extended by mutual agreement.

 

Delhivery has engaged Shardul Amarchand Mangaldas & Co as its legal advisor and Ernst & Young for financial and tax diligence related to the transaction.

 

Ecom Express financials

Ecom Express was incorporated in August 2012 and is a technology-enabled end-to-end logistics solutions provider headquartered in Gurugram, Haryana. The company’s turnover for the past three financial years, as per audited reports, was ₹2,090 crore in March 31, 2022, ₹2,548 crore in 2023, and ₹2,607 crore in 2024.

 

With an authorised share capital of ₹2,400 crore and a paid-up share capital of ₹420.73 crore, Ecom Express has established itself as a significant player in the logistics space.

 

"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,” Barua said.

 

This acquisition follows Delhivery’s previous allegations against Ecom Express regarding misrepresentation of shipment volumes, profitability, and capacity metrics in its draft red herring prospectus (DRHP) last year. Delhivery had pointed out discrepancies in how the two companies accounted for shipments, leading to inflated figures in Ecom Express’s reporting. While Delhivery counts a shipment as a single unit, even if returned to origin, Ecom Express considers it as two shipments, leading to a higher reported volume.