India’s logistics industry is set for a major transformation as Delhivery announces the acquisition of Ecom Express for up to Rs 1,407 crore. This move marks one of the biggest consolidations in the logistics sector and is expected to reshape the delivery ecosystem across the country. Delhivery’s board approved the acquisition through a Share Purchase Agreement, and the process is expected to be completed within six months. Once finalized, Ecom Express will become a full subsidiary of Delhivery.
Delhivery Ecom Express Acquisition
Delhivery’s Managing Director and CEO, Sahil Barua, said the acquisition would lead to better services for customers by combining investments in infrastructure, advanced technology, and skilled talent. He emphasized that this deal will allow the company to serve its clients more efficiently and strengthen its position in the Indian logistics space.
K. Satyanarayana, co-founder of Ecom Express, welcomed the deal and said Delhivery’s scale and resources will open new growth opportunities. The acquisition comes at a time when Ecom Express has been facing financial difficulties, including a cancelled IPO and a distressed business position. The company was previously valued at over Rs 7,000 crore as of June 2024, but the new deal reflects a significant dip in valuation.
Exit of Private Equity Investors
This acquisition also marks a full exit for private equity investors such as Warburg Pincus, Partners Group, and British International Investment. These investors had been backing Ecom Express for several years, but the current financial situation of the company led to a strategic sale.
The acquisition also follows a past disagreement between Delhivery and Ecom Express. In 2024, Delhivery had raised concerns about misleading shipment and profitability data mentioned by Ecom Express in its draft red herring prospectus (DRHP). Delhivery clarified that differences in shipment weight, customer base, and parcel size had made direct comparisons unfair. Delhivery stated its average parcel weight was nearly double, due to serving a wider range of clients including large-scale businesses.
Legacy of Ecom Express Co-founder
Ecom Express was founded in 2012 by T.A. Krishnan, who played a key role in building India’s third-party logistics sector. Krishnan passed away in October 2023, leaving behind a legacy of innovation and impact in the supply chain industry. With this acquisition, his contributions will now become part of Delhivery’s expanding operations as it continues to grow and improve India’s logistics and delivery network.
