Funding Alert

E-commerce focused logistics company: Ecom Express invests in Paperfly

• ByStartupStory     |    April 20, 2022

Ecom Express, e-commerce focused logistics company, is investing Rs 34.3 crore in Bangladesh-based logistics firm Paperfly. In Paperfly, this will be Ecom Express’ second investment. 

The company’s regulatory filings with the Registrar of Companies (RoC) shows, Ecom Express will pump in Rs 34.3 crore (BDT 392 million) into Paperfly.

A full-stack logistics company, Paperfly offers warehousing, and packaging including first and last mile services across Bangladesh. The company also enables payments, online stores, and builds apps for small and medium businesses, unlike logistics firms in India. 

Ecom Express has adopted a new employee stock option scheme ECOM ESOP SCHEME 2022, apart from the investment, consolidating the old ESOP plan from 2017 into the new pool, separate regulatory filings show.

The new plan, each convertible to one equity share, constitutes 126,000 stock options. According to an estimate, now the new plan is worth over Rs 115 crore.

At a time when Ecom Express is planning for a public listing this year, the expansion of the ESOP pool has come in. In January, the company converted into a public entity and a fundraise of up to Rs 4,860 crore or $648 million through a public issue of shares has been approved at the time its board. 

According to a separate filing, to increase their stake in the company, Ecom Express’ co-founders TA Krishnan, Kotla Satyanarayanan and Manju Dhawan have invested Rs 3.63 crore each.

It’s likely to delay the listing plan and may stretch it to the second half of 2022, the deadline for Ecom Express’ public listing isn’t certain and according to analysts tracking the company. It recorded a turnover of Rs 1,254 crore in FY20 with a net loss of Rs 313.52 crore, while Ecom Express is yet to file an annual financial statement for FY21. 

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