Ecom Express raises $39 million from existing investors as IPO plans stall

Partners Group invested $29 million, Warburg Pincus invested around $5.8 million, and CDC Group put in the remaining amount.

The company raised money from existing investors after it struggled to attract new ones. ET reported on July 1 that it was
looking to raise $125-150 million in private funding round. Ecom Express is among a host of top-tier startups that have put their initial public offering (IPO) plans on hold.

The $39 million fundraise comes as late-stage startups struggle to raise funds amid macroeconomic headwinds. According to media reports, Ecom Express’s has held talks with Amazon for a potential sale.

Competition in the ecommerce logistics space is intensifying, with Delhivery going public and First Cry-backed Xpressbees becoming a $1 billion company in February. Ecommerce major Flipkart has also opened up its logistics arm e-Kart for other sellers and ecommerce companies to use.

However, the long-term outlook for ecommerce logistics looks bright. According to the report by PGA Labs on the Indian ecommerce logistics industry, growth will be driven by the retail market, which is expected to grow to $145 billion by FY26, with about 15 million daily shipments.

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As demand from smaller towns rises and direct-to-consumer brands proliferate, the importance of ecommerce-focussed logistics firms such as Ecom Express will increase, the report said.

ET reported on September 5 that Bengaluru-based logistics startup Shadowfax, which is also increasingly focussing on ecommerce deliveries, is in
talks to raise $75-100 million from A91 Partners and others.