Logistics startup Ecom Express seeks $125-150 mn in private funding as IPO plans stall
- ByStartupStory | July 1, 2022
Ecom Express, a logistics company with an emphasis on e-commerce, is aiming to raise $125 to $150 million in private capital, according to people with knowledge of the situation. Ecom Express was getting ready to list until the markets became unsteady. Ecom Express has put its Initial Public Offering (IPO) strategy on hold for the time being, similar to many other top-tier firms.
According to sources familiar with the company’s pitch to investors, it is working with investment banks JM Financial NSE -1.97 percent and Barclays for the financing and plans to compare itself to Delhivery, the largest third-party logistics provider that went public in May. The company have made a pitch to investors for a round of up to $150 million, but an IPO now appears implausible in the market. The discussions are in their early stages, and a valuation has not been decided upon yet, according to the source.
In terms of daily shipment volumes, Ecom Express and SoftBank-backed Xpressbees are closely separated from Delhivery, the industry leader. Industry sources estimate that Ecom Express sends out between 1 and 1.1 million e-commerce packages per day. The company’s ambitions for a fresh capital round coincide with a slowdown in deals of $100 million or more, both domestically and internationally, as a result of macroeconomic shifts and rising interest rates in the US.
Although a major portion of this would have been through an offer for sale, the company’s latest fund-raising forecasts are lower than what it was proposing through an IPO last year when its board approved a $600 million public share sale plan.
T A Krishnan, Manju Dhawan, K Satyanarayana, and the late Sanjeev Saxena founded Ecom Express in 2012. The company claims to have operations in over 2,650 towns spread over 29 states and 27,000 pin codes. In an effort to diversify its activities beyond India, it made an investment in Paperfly of Bangladesh last year.
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