Warburg Pincus Assisted Ecom Express to Raise $150 million

Warburg Pincus Assisted Ecom Express to Raise $150 million_insights_success

E-commerce based logistics firm Ecom Express has begun the process of raising $75 million in a new round of funding. Ecom Express’s current private equity investor Warburg Pincus is expected to bring in another $75 million, which could leverage the fund raising to a total sum of $150 million.

The firm, which until now was only handled by last-mile deliveries, has lately started fulfillment services, which includes receiving, packaging and shipping of products ordered by their customers. As a crucial part of this new line of the business, these facilities is going to offer order processing, inventory management, packaging and dispatch services.

Ecom Express’ principal investor, Warburg Pincus, has made numerous large bets in logistics. In the final quarter of 2016, it invested a sum of $75 million (Rs500 crore) in Gurgaon-based logistics services providing firm Rivigo for a minority stake. Rivigo is a logistics services solutions firm which provides solutions to companies in sectors such as e-commerce, consumer goods, automotive, retail and pharmaceuticals.

Earlier in 2015, the private equity fund had entered into a $250-million joint venture with real estate developer Embassy Group to build warehouses across the country.

Another Warburg group firm Continental Warehousing Corp. (Nhava Sheva) Ltd trailed its share-sale prospectus in the second quarter previous year and is likely to launch its initial public offering (IPO) soon. Warburg had invested a sum of $100 million earlier in the company.

According to Sanjay Sethi, managing director and chief executive at infrastructure advisory firm Nestor Consulting India said, “GST, which is a few months away, will result in a significant shift in the way logistics business is managed in the country. The logic of setting up warehouses for tax efficiency will change and people will set up mega storage spaces close to consumption markets, which will drive demand for funds,” he said.