New Delhi, India, September 12, 2014: Ecom Express Private Limited, one of India’s fastest growing, e-commerce dedicated logistics solutions providers, today announced a fund raise of over Rs. 100 Crore from Peepul Capital. With this new funding, the Company plans to grow its distribution capabilities even faster by expanding operations and reach.
The start-up, founded by professionals with several decades of cumulative experience in the logistics and distribution industry, focuses on logistics services for the booming e-commerce industry. Ecom Express delivered nearly 5 million packages last year and has 3000 employees currently on board. The Company expects to deliver about 20 million packages this year. Last year, Ecom Express had raised angel round of funding led by Oliphans Capital who specialise in early stage investments. The Company plans to expand its current footprint of 190 locations to 800+ locations in the next 5 years, achieving nation-wide coverage.
“The infusion will go towards strengthening Ecom Express’s current reach, expanding operations, investing in technology and automation, attracting key talent and to build a healthy flow in working capital,” said the company’s Co-Founder and CEO, TA Krishnan. “With the intention to become an enabling partner and make significant contributions to the growth of the e-commerce industry, we are confident that this fund infusion will provide the impetus to achieve our company’s vision and drive our growth plans in a more focused manner.” added Krishnan.
The India on-line retail market is growing at an explosive rate and research shows that it is projected to grow from $3 billion in 2013 to $ 23 billion by 2018. This opens up huge demand for logistic services, offering tremendous opportunities for dedicated solutions providers like Ecom Express.
Srini Vudayagiri, Investment Director at Peepul Capital Advisors, said “The e-commerce industry is growing quickly and logistics is a critical component of the value chain. There is a tremendous opportunity for a dedicated logistics player who can understand and play an enabling role for the e-commerce industry. Ecom Express is strongly positioned to leverage this opportunity given their track record and the experienced leadership team behind the Company,” he said.
“In a short span of time, Ecom Express has strengthened its operations, acquired prominent clients in the e-commerce industry and expanded into three key geographies of the Indian market. With their logistics experience and local expertise, we are confident in this team’s ability to execute and become the dominant e-commerce logistics solutions provider in the country.,” said Srini.
The Company has continually focused on building its capacity and strength in service fulfilment, reverse logistics, technology and automation, and COD (Cash-On-Delivery) management. With trained and qualified industry professionals in senior management, Ecom Express has a good understanding of the end consumer needs and offers customized and innovative solutions to its e-commerce customers. Ecom Express’ unique delivery models have ranged from ‘Try and Buy’, Same Day Delivery and Branded delivery and as well as catering to flexible remittance cycles.
Ecom Express which launched its operations in January 2013, started out with 35 towns and 42 distribution centres in North India with around 250 employees on board. In a matter of 18 months, the company has emerged as one of the fastest growing companies in this space and a preferred partner to the e-commerce Industry. Today, with a workforce of 3,000 employees, the company has presence in over 100 towns and over 190 distribution centres across the country. Ecom Express also has 10 processing centres in Delhi-NCR, Bangalore, Hyderabad, Chennai, Kolkata, Ahmedabad and Pune.
Currently, the company is focused on opening up new locations across North, South and West India. Ecom Express further plans to expand its distribution capabilities in the East and North East in a phased manner within the next few months. “With these rounds of expansion, Ecom Express would offer reach across the country. Within the next year or so, the company expects to cover nearly 500 towns and cities,” said Krishnan.