Ecom Express, a New Delhi-based e-commerce logistics company, is looking to secure between $8 million and $9 million (Rs 48 crore to Rs 54 crore) from investors as it expands its one-year old operations, Co-founder and CEO, TA Krishnan said.
Ecom Express, a New Delhi-based e-commerce logistics company, is looking to secure between $8 million and $9 million (Rs 48 crore to Rs 54 crore) from investors as it expands its one-year old operations, Co-founder and CEO, TA Krishnan said (as reported by ET).
The start-up founded by former Blue Dart executives focuses on last mile deliveries of small packages for the booming e-commerce industry. It delivers as many as 30,000 packages a day and has 1,500 employees on its pay roll.
“Currently the funds are doing their due diligence. We are expecting to get $8-9 million in one go, but I can’t comment on the time it will happen,” said Krishnan. These funds will be used for expansion, to upgrade technology and working capital requirements, he said.
The logistics business is capital intensive and not easily scalable, making venture capitalists slightly reluctant. Private equity funds, on the other hand, have more patience and a longer timeline of investment.
Several e-commerce logistics start-ups have shut shop in the past one year failing to get adequate funding to help them scale up in a fiercely competitive market. Start-ups such as Ecom Express and Delhivery are also facing rising competition from established logistics and courier companies like Blue Dart and DTDC.
Ecom Express will not find it tough to raise funds for expansion given the founding team’s long experience in the logistics industry, experts in the industry said. Times Group-backed Delhivery raised $5 million from Nexus Ventures Partners last year. E-commerce logistics companies are expanding out to smaller towns where logistics arm of large e-commerce companies don’t have a presence.