Ecom Express, the logistics firm based in Gurugram, is set to raise Rs 1,424 crore (approximately $172 million) from its existing investors through a rights issue. This marks the company’s first round of investments in the current year.
The board of Ecom Express has approved a special resolution to issue 15,70,000 CCPS at an issue price of Rs 9,071 per share to raise the capital, according to regulatory filings accessed from the Registrar of Companies (RoC).
The company plans to utilise the funds for general corporate purposes, capital expenditures, and operating expenses, among other needs.
Founded in 2012, Ecom Express provides logistics services across more than 2,700 towns and 27,000 pin codes in India. The firm employs over 50,000 people and operates more than 3,000 facility centres.
In October 2022, Ecom Express raised $39 million from existing investors, including CDC Group and Partners Group. Earlier, in February 2022, the company had approved a fundraising of up to Rs 4,860 crore ($648 million) via a public issue of shares, though it later put its IPO plans on hold.
To date, excluding the current funding, Ecom Express has raised over $250 million through a mix of equity and debt.
In terms of financial performance, Ecom Express reported a 21.9% increase in revenue from operations, reaching Rs 2,548 crore in FY23, up from Rs 2,090 crore in FY22. The company derives 90% of its revenue from courier services. However, its losses surged fourfold to Rs 375 crore in FY23, compared to Rs 91 crore in the previous fiscal year. The firm is yet to file its annual report for FY24.
With this significant infusion of capital, Ecom Express aims to bolster its operations and maintain its competitive edge in the logistics sector.
