Delhivery Acquires Ecom Express for ₹1,407 Crore

6 Apr 2025 , 11:17 PM

Delhivery, India’s largest logistics company, on April 5 announced it had acquired rival Ecom Express in an all-cash deal of up to ₹1,407 crore. The deal for a 99.4% stake in Ecom Express puts the deal on the list of the biggest consolidation deals in the logistics space of India.

When regulatory approvals are completed, Ecom Express will be a Delhivery subsidiary within six months, enhancing the market presence of Delhivery. Although technically termed a strategic acquisition, market players think the transaction also carries implications of financial difficulties in Ecom Express, particularly after SoftBank’s exit at a valuation lower than anticipated.

Delhivery said the takeover will optimize expenses, enhance customer experience, and speed up tech spending in automation, robots, drones, and electric vehicles (EVs).

Ecom Express, established in 2012, was at one time a prominent e-commerce logistics brand with backing from leading investors such as SoftBank, CDC Group (currently British International Investment), and Partners Group.

In spite of having reported FY24 revenue of ₹2,607 crore, Ecom Express continued to grapple with profitability and scale, particularly in an extremely competitive and funding-starved environment.

The timing of the acquisition comes on the heels of Ecom Express’s dropped plans to go for an IPO after worries were raised about revelations in its draft red herring prospectus (DRHP).

For Delhivery, the deal provides operational synergies in terms of greater route density, improved asset efficiency, and greater visibility over e-commerce delivery volumes. The acquisition also allows Delhivery to eliminate a major rival while increasing its presence at a subsidized price.