#DelhiveryAcquiresEcomExpress: Logistics Giant Buys Rival for ₹1,407 Crore Amid Layoffs & IPO Pause
07 Apr 2025 |
In a major consolidation move in India’s logistics sector, Delhivery has announced the acquisition of rival Ecom Express for ₹1,407 crore. The deal comes at a critical time for Ecom Express, which has been grappling with layoffs, slowing demand, and paused IPO plans amid broader economic headwinds.
Delhivery to Absorb Ecom Express as Subsidiary
The acquisition, pending regulatory approvals, will see Ecom Express become a subsidiary of Delhivery. In an exchange filing on April 5, 2025, Delhivery stated:
“The board has approved the acquisition of at least 99.4% of Ecom Express’s paid-up share capital for a purchase consideration not exceeding ₹1,407 crore.”
Sahil Barua, MD & CEO of Delhivery, said:
“The Indian economy needs continuous improvements in logistics efficiency. This acquisition will help us serve customers of both companies better.”
K. Satyanarayana, Founder of Ecom Express, added:
“This marks a new growth phase for Ecom Express. The combined strengths will drive significant benefits for businesses and the logistics industry.”
Ecom Express’s Struggles: Layoffs & Shelved IPO
The acquisition follows a turbulent phase for Ecom Express, which:
- Laid off ~500 employees in cost-cutting measures.
- Paused its IPO plans despite SEBI approval in December 2024 for a ₹2,600-crore offering (including fresh issue of ₹1,284.5 crore).
- Saw revenue grow marginally (2.2%) to ₹2,609.2 crore in FY24, while losses narrowed to ₹255.8 crore from ₹428.1 crore in FY23.
The company, which serves 27,000+ pin codes and employs 15,600+ workers, cited market volatility as the reason for delaying its IPO.
What’s Next? Integration & Market Impact
Delhivery plans to integrate operations immediately, focusing on:
✔ Route optimization
✔ Warehouse network consolidation
✔ Tech platform unification
The combined entity is expected to strengthen B2C parcel delivery and e-commerce logistics, offering better economies of scale.