In a blow to its once-rich valuation, Delhivery is acquiring rival logistics firm Ecom Express in an all-cash deal for Rs 1,407 crore. The Gurugram-based company had been valued at around Rs 7,000 crore less than a year ago.
Here’s a timeline of how the once high-flying startup hit turbulence:
2012: Late T A Krishnan cofounded Ecom Express along with K Satyanarayana, Manju Dhawan, and Sanjeev Saxena—former Blue Dart executives. The company began operations in January 2013 from Gurugram, focusing on ecommerce logistics.
Rapid expansion: Ecom Express built a tech-first delivery network across over 2,400 cities in India, introducing GPS-enabled vehicles, real-time tracking, route optimisation, and digital proof of delivery.
Strategy misfire: The firm’s emphasis on sustainable profitability over aggressive growth meant it lagged in a cut-throat market. It was content playing second fiddle to Delhivery until Xpressbees edged it down to third place.
IPO shelved: Like many top-tier startups, Ecom Express had to defer its public listing in 2022 due to post-pandemic volatility in capital markets.
Funding challenges: In October 2022, it raised $39 million from existing backers Warburg Pincus, CDC Group, and Partners Group as fresh funding proved elusive. The company was caught in the late-stage funding winter.
Leadership loss: Co-founder Krishnan passed away in October 2023 after a prolonged illness.
Financials: For FY23, the company clocked Rs 2,548 crore in operating revenue (up over 20% YoY) but saw losses widen to Rs 375 crore from Rs 91 crore. Expenses jumped 30% to Rs 2,856 crore.
June 2024: ET reported Ecom Express was planning to raise Rs 1,424 crore through a rights issue, likely led by existing investors Warburg Pincus, British International Investment (BII), and Partners Group.
August 2024: The company filed for an IPO worth Rs 2,600 crore. It planned to invest proceeds in automation and expand its fulfilment footprint.
Pushback from rival: In September, Delhivery flagged discrepancies in Ecom Express’ draft IPO papers, accusing it of misrepresenting its network reach and automation levels.
FY24 numbers: Operating revenue stood at Rs 2,609 crore, a slight rise from Rs 2,553 crore in FY23. Net loss narrowed to Rs 255 crore from Rs 428 crore the previous year.
December 2024: The Securities and Exchange Board of India (Sebi) gave its nod to the IPO.
IPO stalls: Broader market uncertainty and internal challenges prompted the company to shelve its listing plans. In the lead-up to the Delhivery deal, Ecom Express shuttered several delivery hubs and laid off hundreds of employees.
April 2025: Delhivery announced it would acquire Ecom Express for Rs 1,407 crore in a distress sale. Warburg Pincus, Partners Group, and BII will fully exit their investments as part of the transaction.
Here’s a timeline of how the once high-flying startup hit turbulence:
2012: Late T A Krishnan cofounded Ecom Express along with K Satyanarayana, Manju Dhawan, and Sanjeev Saxena—former Blue Dart executives. The company began operations in January 2013 from Gurugram, focusing on ecommerce logistics.
Rapid expansion: Ecom Express built a tech-first delivery network across over 2,400 cities in India, introducing GPS-enabled vehicles, real-time tracking, route optimisation, and digital proof of delivery.
Strategy misfire: The firm’s emphasis on sustainable profitability over aggressive growth meant it lagged in a cut-throat market. It was content playing second fiddle to Delhivery until Xpressbees edged it down to third place.
IPO shelved: Like many top-tier startups, Ecom Express had to defer its public listing in 2022 due to post-pandemic volatility in capital markets.
Funding challenges: In October 2022, it raised $39 million from existing backers Warburg Pincus, CDC Group, and Partners Group as fresh funding proved elusive. The company was caught in the late-stage funding winter.
Leadership loss: Co-founder Krishnan passed away in October 2023 after a prolonged illness.
Financials: For FY23, the company clocked Rs 2,548 crore in operating revenue (up over 20% YoY) but saw losses widen to Rs 375 crore from Rs 91 crore. Expenses jumped 30% to Rs 2,856 crore.
June 2024: ET reported Ecom Express was planning to raise Rs 1,424 crore through a rights issue, likely led by existing investors Warburg Pincus, British International Investment (BII), and Partners Group.
August 2024: The company filed for an IPO worth Rs 2,600 crore. It planned to invest proceeds in automation and expand its fulfilment footprint.
Pushback from rival: In September, Delhivery flagged discrepancies in Ecom Express’ draft IPO papers, accusing it of misrepresenting its network reach and automation levels.
FY24 numbers: Operating revenue stood at Rs 2,609 crore, a slight rise from Rs 2,553 crore in FY23. Net loss narrowed to Rs 255 crore from Rs 428 crore the previous year.
December 2024: The Securities and Exchange Board of India (Sebi) gave its nod to the IPO.
IPO stalls: Broader market uncertainty and internal challenges prompted the company to shelve its listing plans. In the lead-up to the Delhivery deal, Ecom Express shuttered several delivery hubs and laid off hundreds of employees.
April 2025: Delhivery announced it would acquire Ecom Express for Rs 1,407 crore in a distress sale. Warburg Pincus, Partners Group, and BII will fully exit their investments as part of the transaction.
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