StartupTalky

Tag: Ecom Express

  • Acquisition of Ecom Express by Delhivery Set to Cost INR 1,400 Cr

    Delhivery Ltd, a logistics services company, stated on 5 April that it would acquire Ecom Express Ltd. This acquisition deal will cost Delhivery around INR 1,400 crore in cash. The step is taken in order to expand operations of Delhivery. The business announced in a regulatory filing that it has finalised a deal to buy a majority share in Ecom Express Ltd. from its stockholders for about INR 1,400 crore in cash. With a purchase price of no more than INR 1,407 crore, the board of the company authorised the purchase of shares of Ecom Express Ltd that represented at least 99.4% of the issued and paid-up share capital, fully diluted.

    The Deal Gets the Nod from Ecom’s Board

    The board has given its approval for the company, Ecom Express, and its shareholders to execute a share purchase agreement as well as other required paperwork. It is anticipated that the transaction would be finalised in the upcoming six months. Ecom Express, a company situated in Gurugram, made INR 2,607.3 crore in the fiscal year 2023–24 compared to INR 2,548.1 crore the year before. Sahil Barua, MD and CEO of Delhivery, commented on the agreement, stating that the Indian economy needs ongoing advancements in logistics speed, reach, and cost-effectiveness. Delhivery is certain that this acquisition would allow it to better serve the clients of both businesses by making more daring investments in people, technology, networks, and infrastructure. He continued by saying that Ecom Express’s founders and management have built a solid network and team that will be easy to incorporate into Delhivery’s operations. Delhivery will be the perfect stakeholder for Ecom Express’s next stage of expansion, according to K. Satyanarayana, the company’s founder.

    Waiting for CCI’s Approval

    The Competition Commission of India’s clearance and the usual closing conditions must be met before the deal may be completed. Founded in August 2012, Ecom Express Ltd. offers comprehensive logistics solutions powered by technology. According to the company, this acquisition will increase Delhivery’s scale and fortify its value proposition to customers. According to a Delhivery official statement, the larger scale brought about by this acquisition should enable Delhivery to make more efficient investments in enhancing service quality through network expansion and network quality enhancements. Delhivery offers a broad range of logistics services, including supply chain, technology, cross-border, PTL, TL, and rapid parcel transportation, through its statewide network that spans more than 18,700 pin codes. According to the filing, Delhivery has completed more than 3.4 billion shipments since its founding and serves more than 39,000 clients, including SMEs, big and small e-commerce players, and other businesses and brands.

  • Smartworks and Ecom Express Receive SEBI Approval for IPO

    SEBI has approved the initial public offerings (IPOs) of coworking space provider Smartworks and logistics business Ecom Express. According to the information on SEBI’s website, the regulator made the remark against Ecom Express on November 29.

    A prior, on November 28, Smartworks received the observation. The public offering is approved by SEBI when an observation is issued. In August, Ecom Express submitted its draft red herring prospectus (DRHP) for an initial public offering (IPO) for INR 2,600 Cr. This includes an offer for sale (OFS) for INR 1,315.5 Cr and a new issue of equity shares up to INR 1,284.5 Cr. In the same month, Smartworks submitted its draft IPO documents. The company’s initial public offering (IPO) will include an offer for sale (OFS) of up to 67.49 lakh equity shares and a new issue of equity shares valued at INR 550 Cr. Before submitting its Red Herring Prospectus (RHP), the coworking company also intends to raise INR 110 Cr through a pre-IPO placement.

    Operations and Financial Dynamics of Both the Firms

    The late TA Krishnan, Manju Dhawan, K Satyanarayana, and Sanjeev Saxena founded Ecom Express in 2012 as a pure-play provider of B2C ecommerce logistics solutions. It makes money by providing services to consumers in the Indian e-commerce sector, which includes D2C, vertical, horizontal, and fast commerce platforms. In the fiscal year 2023–2024 (FY24), the company reported a net loss of INR 255.8 Cr on operational sales of INR 2,609 Cr. Conversely, Smartworks, a shared workspace service that provides businesses with customised coworking solutions, was established in 2016 by Neetish Sarda and Harsh Binani.

     With more than 40 locations in 14 cities, including Bengaluru, Kolkata, Delhi NCR, and Mumbai, it boasts more than 8 million square feet of office space. It says it serves over 600 businesses, such as Moglix, DHL, Starbucks Coffee, and Honeywell.  It faces competition from companies like IndiQube, WeWork India, and Awfis. According to its DRHP, Smartworks’ operating revenue increased to INR 1,039.4 Cr in FY24, while its net loss decreased to INR 49.8 Cr. 

    IPOs are Becoming More Common Among Startups

    With initial public offerings (IPOs) emerging as a crucial means of obtaining funding, the Indian startup scene is undergoing a significant transformation. For the second time in history, mainboard initial public offerings (IPOs) have raised more than INR 1 lakh crore in 2024. Over INR 1.03 lakh billion has been raised through 70 initial public offerings (IPOs) this year, the most since 2007. In contrast, 63 firms raised more than INR 1.19 lakh crore through IPOs in 2021, compared to 100 IPOs that were launched in 2007 and raised INR 34,179 crore.

    This remarkable expansion coincides with a slowdown in the global IPO markets, which has seen a 16% drop in capital raised and a 12% drop in listings. India has distinguished itself on the international scene with its distinct blend of economic stability, a flourishing digital economy, and a developing private equity (PE) and venture capital (VC) ecosystem.

    UPI Value Drops 8% in November, Volume Down 7%
    UPI transactions saw a decline in November, with an 8% drop in value and a 7% decrease in volume, reflecting a slowdown in digital payments activity.
    StartupTalkyNitin Konde