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Exclusive: Ecom Express board approves Rs 2,600 Cr IPO

EntrackrEntrackr · 10m ago
Exclusive: Ecom Express board approves Rs 2,600 Cr IPO
Medial

Logistics firm Ecom Express appears close to file draft red herring prospectus as it has received board’s approval for initial public offering worth Rs 2,600 crore via a mix of fresh issue and offer for sale. The board at Ecom Express has passed a special resolution to approve its initial public offer of equity shares amounting to Rs 2,600 crore, which consists of Rs 1,284 crore of fresh issue and Rs 1,316 crore offer for sale, according to the company’s internal documents accessed by Entrackr. As per media reports, the Gurugram-based company already appointed bankers including Kotak Capital, IIFL, Axis Capital, and UBS for the IPO. Ecom Express’ major investors Warburg Pincus and Partners Group are likely to take part in the OFS, said sources. As per data intelligence platform TheKredible, Warburg Pincus is the largest external stakeholder with 48.26% followed by Partners Ground and CDC Group. This is the second attempt by the 13 year-old-firm for public listing. In February 2022, it approved a fundraise of up to Rs 4,860 crore via a public issue of shares. However, the firm put a hold on its IPO plan then. Meanwhile, Ecom Express is also raising Rs 1,424 crore (approximately $172 million) from existing investors via right issue. Since its inception, it has scooped up more than $250 million through equity and debt. Ecom Express claims to provide logistics services in over 2,700 towns and 27,000 pin codes in India. It employs over 50,000 people, and has more than 3,000 facility centers across the country. For the fiscal year ending in March 2023, Ecom Express’ revenue from operations increased by 21.9% to Rs 2,548 crore from Rs 2,090 crore in FY22. The company’s losses rose by 4X to Rs 375 crore in FY23 from Rs 91 crore in the previous fiscal year. It is yet to file its FY24 numbers. Ecom Express will be the second Indian startup from the logistics ecosystem that will be listed on the stock exchange. Its competitor Delhivery went public in May 2022. Flipkart-backed Shadowfax is also planning to raise up to Rs 3,000 crore through public listing.

Related News

Ecom Express records Rs 1,912 Cr revenue in first 9 months of FY25

EntrackrEntrackr · 2m ago
Ecom Express records Rs 1,912 Cr revenue in first 9 months of FY25
Medial

Ecom Express reported revenue from operations of Rs 1,912 crore during the first three quarters of FY25, according to an internal document reviewed by Entrackr. Ecom Express saw a dip in revenue alongside growth in losses. The company recorded Rs 2,653 crore in revenue for the full fiscal year FY24. Based on the current trajectory, Ecom Express is likely to close FY25 with around Rs 2,500 crore in revenue or possibly less. Ecom Express generated Rs 2,349 crore from courier services and Rs 260 crore from warehousing operations in the first nine months of FY25. The decline in revenue led Ecom Express to register a net loss of Rs 398 crore in the 9M FY25, compared to Rs 249 crore during FY24. Its adjusted EBITDA loss stood at Rs 104 crore in the first nine months of FY25. Before the acquisition, Ecom Express raised over $290 million. The discount sale of Ecom Express underscores the challenge of large logistics businesses with significant man-management requirements. Ecom Express has made progress with a strong leadership team in place.

Ecom Express DRHP: Partners Group to sell stake worth Rs 931 Cr

EntrackrEntrackr · 10m ago
Ecom Express DRHP: Partners Group to sell stake worth Rs 931 Cr
Medial

Logistics firm Ecom Express has filed its draft red herring prospectus (DRHP) with the Security Exchange Board of India (SEBI) for an initial public offering (IPO). The DRHP has come just after days of an Entrackr report about the firm’s board giving a nod for the IPO. The firm has proposed to raise RS 2,600 crore in IPO, through a fresh issue of equity shares aggregating up to Rs 1,284.5 crore and an offer for sale (OFS) of up to Rs 1,315.5 crore worth equity shares. Partners Group will be offloading shares worth up to Rs 931 crore, while Warburg Pincus and BII (formerly CDC Group) will sell shares worth Rs 211 crore and Rs 137 crore, respectively, during the offer for sale. As per the time of filing, Partners Group is the largest stakeholder with 49.76% followed by Warburg Pincus and BII (British International Investment ) which hold 27.13% and 10.03%, respectively. As per the DRHP, IIFL Securities Limited, Axis Capital, Kotak Investment, and UBS Securities India are the book-running lead managers of the issue. This is the second attempt by the 13 year-old-firm for public listing. In February 2022, it approved a fundraise of up to Rs 4,860 crore via a public issue of shares. However, the firm put a hold on its IPO plan then. Meanwhile, Ecom Express is also raising Rs 1,424 crore (approximately $172 million) from existing investors via right issue. Since its inception, it has scooped up more than $250 million through equity and debt. Ecom Express provides logistics services in over 2,700 towns and 27,000 pin codes in India. The firm delivered 514 million shipments in 2024 while its competitor Delhivery did 740 million during the same period. Importantly, out of 514 million shipments handled in FY24, Tier 2 cities accounted for 81.79% of the shipments while Metro and Tier 1 cities were at 10.52% and 7.69% respectively. The logistics firm reported flat revenue in the last fiscal year, but the firm managed to cut costs drastically. It posted a modest 2.1% increase in its revenue to Rs 2,609 crore in FY24 as compared to Rs 2,554 crore in FY23. Its losses shrank by 40% to Rs 256 crore in the same period.

Ecom Express and Smartworks receive SEBI nod for IPO

EntrackrEntrackr · 6m ago
Ecom Express and Smartworks receive SEBI nod for IPO
Medial

Logistics firm Ecom Express and coworking space provider Smartworks have secured approval from the Securities and Exchange Board of India (SEBI) for their initial public offerings (IPOs). Ecom Express, which filed its draft red herring prospectus (DRHP) in August, aims to raise Rs 2,600 crore through its IPO. This includes a fresh equity issue of up to Rs 1,284.5 crore and an offer for sale (OFS) totaling Rs 1,315.5 crore. As part of the OFS, Partners Group will divest shares worth up to Rs 931 crore, while Warburg Pincus and BII (formerly CDC Group) will sell shares valued at Rs 211 crore and Rs 137 crore, respectively. This is the 13-year-old firm's second attempt at going public, after pausing its Rs 4,860 crore IPO plan approved in February 2022. In the logistics space, Delhivery and Blackbuck are already listed on the stock exchange, while Shadowfax is also gearing up for their IPOs. Smartworks, which also submitted its draft IPO papers in August, plans to raise funds through a fresh equity issue worth Rs 550 crore, alongside an offer for sale (OFS) of 67.49 lakh equity shares by its promoters. As of March 2024, Smartworks has a presence in as many as 13 cities, including Bengaluru, Kolkata, Delhi NCR, Mumbai, and Pune, with a portfolio of 41 centers spanning 8 million square feet. Smartworks will become the second firm, after Awfis, to get listed on the bourses. As per media reports, WeWork India, Simpliwork, Table Space firm, DevX, and Indiqube are also gearing up for their IPOs.

Ecom Express’ revenue goes past Rs 2,500 Cr in FY23; losses surge 4X

EntrackrEntrackr · 1y ago
Ecom Express’ revenue goes past Rs 2,500 Cr in FY23; losses surge 4X
Medial

E-commerce-focused logistics company Ecom Express has managed 20% year-on-year growth during the fiscal year ended March 2023. However, the company’s losses skyrocketed four-fold as its shipping and employee benefits costs rose sharply in the same period. Ecom Express’ revenue from operations increased by 21.9% to Rs 2,548 crore in FY23 from Rs 2,090 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. Twelve-year-old Ecom Express is an e-commerce focused logistics solution provider. Income from its courier services formed 90% of the revenue. This income grew 17.5% in FY23 whereas the remaining collections minted from warehousing services. The company also made Rs 34 crore from interest on deposits and current investments tallying its overall income to Rs 2,582 crore in FY23. See TheKredible for the detailed revenue breakup Expenses Breakdown Total ₹ 2,185 Cr Total ₹ 2,856 Cr ”https://thekredible.com/company/ecom-express/financials” View Full Data To access complete data, visit”https://thekredible.com/company/ecom-express/financials” Cost of materials consumed Cost of materials consumed Employee benefit Employee benefit Rent and repairs Rent and repairs Legal professional Legal professional Safety security Safety security Others To check complete Expense Breakdown visit thekredible.com View full data Caveat: We have not included the cost of impairment loss on non-financial assets during the fiscal year ending March 2023. The increased shipping cost and employee benefits made Ecom Express bleed heavily, shooting its losses up by 4X to Rs 375 crore in FY23 from Rs 91 crore in FY22. Its ROCE and EBITDA margin stood at -21% and -5.2% respectively. On a unit level, it spent Rs 1.12 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin 4% -5.2% Expense/₹ of Op Revenue ₹1.05 ₹1.12 ROCE -4% -21% The Warburg Pincus-backed company has raised over Rs 2,000 crore ($240 million) to date. According to the data intelligence platform, TheKredible, Warburg Pincus was the largest external stakeholder with 48.26% followed by Partners Ground and CDC Group. Ecom Express was all set to float its initial public offering (IPO) in early 2022 as it approved a fundraise through a public issue of shares. However, it postponed listing plans in October 2022 and dialed up existing investors to raise $39 million during the same period. Built on a promise of wringing out more efficiencies with use of technology and other steps, the worsening of margins seems to be a one off, as the firm will look to a more balanced output in FY24. It has done well to carve out a share for itself in the logistics space, and the only crimp on the horizon seems to be the deceleration seen in e-commerce sales itself. That will hurt Ecom Express, seeing how deeply the firm is focused on the segment. A year of single digit growth, even with lower profits is not something it will want at this stage, and that might actually force more streamlining than it bargained for.

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