Delhivery Logistics Deal: In a major consolidation move in India’s logistics sector, Delhivery Ltd has announced its decision to acquire rival firm Ecom Express Limited for a total consideration not exceeding ₹1,407 crore. The proposed acquisition, which is subject to regulatory approvals, will make Ecom Express a wholly-owned subsidiary of Delhivery, the company revealed in a regulatory filing on Saturday.
Delhivery’s board has already approved the execution of a share purchase agreement with Ecom Express and its shareholders, including other essential transaction documents. The acquisition is expected to be completed within six months, though the timeline may be extended by mutual consent.
Commenting on the acquisition, Sahil Barua, Managing Director and CEO of Delhivery, said, “The Indian economy requires continuous improvements in cost efficiency, speed and reach of logistics. We believe this acquisition will enable us to service customers of both companies better, through continued bold investments in infrastructure, technology, network and people.”
The deal signals a significant shift in India’s logistics landscape, creating a combined force that is expected to deliver greater operational synergies, enhanced customer reach, and accelerated innovation in logistics technology.
K Satyanarayana, founder of Ecom Express, echoed the sentiment: “This acquisition marks a new growth phase for Ecom Express, and the combined strengths of both companies will drive substantial benefits for businesses across India and the logistics industry as a whole.”
Delhivery has appointed Shardul Amarchand Mangaldas & Co as legal advisor and Ernst & Young for financial and tax diligence in relation to the acquisition.
Ecom Express Financials and Background
Founded in August 2012 and headquartered in Gurugram, Ecom Express is a leading technology-enabled logistics solutions provider. Over the past three years, the company has demonstrated steady financial growth with revenues of ₹2,090 crore in FY22, ₹2,548 crore in FY23, and ₹2,607 crore in FY24. It currently has an authorised share capital of ₹2,400 crore and a paid-up share capital of ₹420.73 crore.
The acquisition also comes on the heels of a past controversy between the two companies. Last year, Delhivery accused Ecom Express of misrepresenting shipment data in its draft red herring prospectus (DRHP). Delhivery alleged that Ecom inflated shipment volume by counting returns as separate units, whereas Delhivery counts them as a single shipment even when returned to origin.
Despite the past tensions, Delhivery’s leadership expressed confidence in the merger, with Barua stating, “The founders and management of Ecom Express have established a high-quality network and team, creating a strong foundation to integrate into Delhivery’s operations.”
This strategic acquisition is expected to strengthen Delhivery’s market share and reinforce its position as a leading logistics service provider in India, ahead of intensifying competition in the e-commerce delivery space.
