Delhivery Aims High with CCI Approval for Ecom Express Purchase
Deal News | Apr 20, 2025 | EIN
Delhivery, a leading Indian supply chain and logistics company, has sought approval from the Competition Commission of India (CCI) to acquire a nearly complete stake in Ecom Express for ₹1,407 crore, in a significant industry consolidation move. The deal involves Delhivery taking over 99.4% of Ecom Express, converting the rival into a subsidiary to help expand its logistics network amid rising demand for prompt deliveries. Ecom Express, founded in 2012, struggled with financial challenges despite cooperation with major e-commerce entities. The acquisition includes an all-cash transaction set for completion in six months, pending regulatory consent. Ecom Express's previous plans for an IPO were shelved due to financial pressure while enduring losses, reflecting its need for a strategic exit via acquisition. The culmination of this acquisition, contingent on CCI clearance, is poised to transform India's logistics sphere, indicating a trend of strategic mergers replacing IPOs in uncertain funding climates.
Sectors
- Logistics and Transportation
- E-commerce
- Investment and M&A
Geography
- India – Both Delhivery and Ecom Express operate primarily within India, making it the primary geographic focus of the acquisition.
Industry
- Logistics and Transportation – The article revolves around the logistics sector, focusing on Delhivery's acquisition of Ecom Express, key players in supply chain and transportation.
- E-commerce – Ecom Express partners with major e-commerce platforms like Amazon and Flipkart, making e-commerce a significant industry in the context.
- Investment and M&A – This transaction represents a significant merger and acquisition within the logistics sector, impacting the investment landscape in India.
Financials
- ₹1,407 crore – The purchase price Delhivery is willing to pay for the acquisition of Ecom Express.
- 2,609 crore – Ecom Express's revenues for FY24.
- 256 crore – The net losses incurred by Ecom Express in FY24.
- 80% – The discount at which Ecom Express is being sold compared to its previous valuation.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Delhivery | Buyer | Company | A major Indian logistics and supply chain company acquiring Ecom Express. |
| Ecom Express | Target Company | Company | A key player in last-mile logistics in India being acquired by Delhivery. |
| Competition Commission of India (CCI) | Regulatory Authority | Government | The governing body responsible for approving the acquisition. |
| SoftBank, Warburg Pincus, Partners Group | Investors | Company | Major global investors who have supported Ecom Express in the past. |