Delhivery, a major logistics service provider, has confirmed its plan to acquire rival company Ecom Express Limited. The acquisition deal is valued at ₹1,407 crore and will be executed entirely in cash. Once finalized, Ecom Express will operate as a subsidiary of Delhivery.
The transaction is pending regulatory approvals. Delhivery disclosed in its recent filing that its board has approved a share purchase agreement with Ecom Express's shareholders.
Regulatory Process and Timeline
For this acquisition to move forward, the Competition Commission of India (CCI) must provide approval. Delhivery anticipates the process will take up to six months to complete. Sahil Barua, Delhivery's Managing Director and CEO, mentioned that this move will enhance service capabilities for both companies.
K. Satyanarayana, the founder of Ecom Express, commented that this partnership opens new avenues for growth. He emphasized that combining two companies in the same sector will support the overall logistics ecosystem.
Stakeholder Exit and IPO History
Ecom Express, established in 2012, will see complete divestment by its major investors — Warburg Pincus, Partners Group, and British International Investment. Based on earlier IPO filings:
- Partners Group held 49.76%
- Warburg Pincus owned 27.13%
- British International Investment had 10%
Ecom Express had previously withdrawn a ₹1,200 crore IPO plan due to market instability. Notably, Delhivery had earlier accused Ecom Express of misrepresenting its business details in IPO filings. Despite this, Delhivery is now acquiring the same company.
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