Delhivery Acquires Rival Ecom Express in Rs 1,407 Crore Deal

Logistics giant Delhivery has acquired competitor Ecom Express for Rs 1,407 crore. It is definitely a strategic move by Delhivery as they aim to enhance their market position. The acquisition was announced in a notice to stock exchanges on Saturday.

"Logistics is a scale-driven business where economies of scale lead to higher efficiencies, enabling players to provide higher quality services at more competitive prices," Delhivery stated in its exchange filing.

Founded in 2012 and headquartered in Gurugram, Ecom Express established itself as a specialized logistics provider for the retail and e-commerce sectors. For fiscal year 2024, the company reported Rs 2,607.3 crore revenue.

Ecom Express had previously secured regulatory approval for an initial public offering of Rs 2,600 crore but postponed those plans, citing unfavorable market conditions. Reports indicated that the company also underwent employee reductions during this period.

Delhivery, established in 2011, made history as India's first publicly listed logistics startup when it debuted on stock markets in 2022. The company recently reported a 114% year-on-year increase in consolidated profit, reaching Rs 25 crore in the third quarter of FY25, compared to Rs 11.7 crore during the same period last year – its first profitable quarter since listing.

"The Indian economy requires continuous improvements in cost efficiency, speed and reach of logistics," said Sahil Barua, Delhivery's Managing Director and CEO. "We believe this acquisition will enable us to service customers of both companies better, through continued bold investments in infrastructure, technology, network and people."

Revenue from operations for Delhivery grew 8% year-on-year to Rs 2,378 crore in the December 2024 quarter, up from Rs 2,194 crore in Q3 FY24 and Rs 2,190 crore in the previous quarter. However, the company's margin dropped slightly to 4.3% from 5% a year earlier.

Ecom Express Founder K Satyanarayana expressed confidence in the acquisition, stating, "Delhivery is among India's leading fully-integrated logistics service providers with significant scale advantages and will be the ideal shareholder for Ecom Express' next phase of growth."

The consolidation comes as India's logistics sector witnesses increasing competition and demand for efficient last-mile delivery services across e-commerce and retail segments.