The company highlights that this acquisition is also expected to foster growth within the vendor ecosystem in the country
In an effort to invest more effectively in enhancing service quality, Delhivery, a logistics service provider has notified that it will be acquiring a 99.4 per cent stake in Ecom Express for purchase consideration not exceeding Rs 1,407 crore. Post completion of such acquisition, Ecom will become a subsidiary of Delhivery.
In an exchange filing, the company stated, “we wish to inform you that the board of directors of Delhivery at its meeting held today (5 April 2025), inter-alia, has considered and approved the acquisition of shares equivalent to at least 99.4 per cent of the issued and paid up share capital, on a fully diluted basis, of Ecom Express (Ecom), for a purchase consideration not exceeding Rs 1,407 Crore.”
The statement added that the Board has approved the execution of the Share Purchase Agreement (SPA) amongst the company, the target company and their shareholders and the execution of other necessary documents regarding the aforementioned acquisition.
As far as the indicative time period for completion of the acquisition is concerned, the company stated that it is expected to be completed within six months from the date of execution of SPA unless extended by the parties to the SPA and it will be an all-cash consideration.
“This acquisition aims to enhance Delhivery’s scale, thereby strengthening its value proposition to clients. The increased scale resulting from this acquisition is expected to allow Delhivery to invest more effectively in improving service quality through network expansion, network quality improvements (such as automation and electric vehicles), technology investments, and research and development (robotics and drones),” the company informed.
The company also added that this acquisition is also expected to foster growth within the vendor ecosystem in the country. Vendors, such as those providing fleet and automation solutions, may gain the confidence to invest in assets and research and development, ultimately benefiting the overall logistics industry in India.
On a financial front, the turnover of Gurugram-headquartered Ecom for the financial year that ended 31 March 2024 stood at Rs 26,073 million, a growth when compared to Rs 25,481 million in financial year ending 31 March 2023.
