E-commerce logistics startup Ecom Express has raised ₹192 crore in a new funding round from existing investor Warburg Pincus — the private equity giant.
As per the reports, the investment in the current round was made through the private equity firm’s unit Eaglebay Investment. The development was reported by Economic Times based on the documents with the registrar of companies, cited by Tofler.
This is the second time that Warburg Pincus invested in Ecom Express. Earlier, it had invested ₹850 crore in the company in 2015. The documents filed with RoC shows that a `Supplemental Agreement’ was made on September 8.
As per the agreement, 609,524 compulsorily convertible preference shares (Series III CCPS) were issued and allotted via preferential allotment to Eaglebay Investment at ₹3,150 per Series III CCPS for an aggregate subscription amount of ₹192,00,00,600.
Ecom Express was founded in 2012 by T A Krishnan, Manju Dhawan, K Satyanarayana and Sanjeev Saxena. The company operates in the same space as Delivery and GoJaVAS, among others.
In India, Warburg Pincus has also invested about ₹500 crore in Gurgaon-based logistics services provider Rivigo for a minority stake. It is also an investor in third-party logistics company Stellar Value Chain.
A couple of months ago, it was reported that the US-based PE firm was in talks to acquire Snapdeal’s logistics arm Vulcan Express, along with other players such as Gati and TVS Logistics.
The Indian online retail market is growing at an explosive rate and research shows that it is projected to grow to $23 billion by 2018. This opens up huge demand for logistic services, offering tremendous opportunities in this space.