Delhivery Limited to acquire Ecom Express Limited.
DELHIVERY · price
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Delhivery's board has approved the acquisition of at least 99.4% of Ecom Express Limited for a cash consideration not exceeding INR 1,407 Crore. Ecom Express, a Gurugram-based end-to-end logistics solutions provider incorporated in 2012, reported a turnover of INR 26,073 million in FY24, up from INR 25,481 million in FY23 and INR 20,903 million in FY22. Post-acquisition, Ecom will become a subsidiary of Delhivery. The deal is expected to close within 6 months of the Share Purchase Agreement, subject to Competition Commission of India approval. The acquisition is a strategic move to enhance Delhivery's scale in the logistics industry, enabling investments in automation, electric vehicles, technology, and R&D to deliver more competitive services.
This is a significant cash deal that consolidates Delhivery's position in India's competitive logistics market through scale benefits. Shareholders should note the all-cash outflow of up to INR 1,407 Crore and potential integration risks, though the deal could strengthen Delhivery's long-term competitive edge and value proposition to clients.