Companies Logistics Economy Live April 5, 2025 0 Comments

Delhivery to acquire Ecom Express for ₹1,407 crore amid layoffs

Delhivery says acquisition will be completed within six months from the date of execution of share purchase agreement

Logistics player Delhivery will acquire Ecom Express Limited for ₹1,407 crore, amid Ecom Express’s layoffs.

“The Board has approved the execution of Share Purchase Agreement amongst the Company, the Target Company (Ecom Express) and their shareholders and execution of other necessary documents regarding the aforementioned acquisition (“Transaction Documents”). Post completion of such acquisition, Ecom will become a subsidiary of the Company,” Delhivery said in a regulatory filing.

The company further mentioned that acquisition will be completed within six months from the date of execution of share purchase agreement (SPA) unless extended by the parties to the SPA.

Sahil Barua, MD and CEO, Delhivery 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. 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.”

This comes at a time when Ecom Express had aimed to go public but cancelled the plans after receiving a nod from SEBI in December 2024. The IPO faced challenges when Delhivery accused Ecom Express of misrepresenting operational metrics in its draft red herring prospectus (DRHP). Delhivery alleged that Ecom Express inflated shipment volumes by double-counting return-to-origin shipments and overstated its reach and automation scale. These claims raised concerns about the accuracy of Ecom Express’s disclosures.

Ecom Express’s last private valuation was pegged at $878 million as of June 28, 2024. The company raised $33.9 million in a Series C funding round on that date, with British International Investment as the investor. Prior to this, Ecom Express had a valuation of $771 million in October 2022.