Logistics startup Ecom Express has closed a USD 36 million round of financing from British development financial institution (DFI) CDC.
“The infusion of capital will help us further expand our delivery footprint in connecting towns and rural centers across the country. Besides expanding reach, the company plans to invest in technology, deploy advanced parcel sortation systems, strengthen network reliability and infrastructure, and finally, make development impact with job creation, environmentally responsible initiatives and gender diversity. These initiatives will help us deliver superior customer experience and build a scalable and sustainable business. We look forward to leveraging CDC’s expertise in driving businesses with socially responsible and environmental initiatives and the firm’s global network of relationships,” TA Krishnan, chief executive of Ecom Express, said in a statement.
Two years agao, the Gurugram-based company had raised USD 30 million from its largest stakeholder, Warburg Pincus.
“In Ecom Express, we have a partner company that recognises the vital importance of creating a genuinely sustainable and gender inclusive business. I am delighted that, through our expertise in impact investing in support of the UN’s Sustainable Development Goals, we will be adding value far beyond our capital contribution. We are dedicated to responsibly investing our capital in India, with over $1.7 billion currently committed to local businesses. We have the same amount again to invest over the next few years and look forward to working with many more businesses that are as environmentally and socially conscious as Ecom Express” Srini Nagarajan, managing director and head of Asia at CDC, said. The British DFI has already committed capital of about $1.7 billion in India, making it one of the most active impact investors in Asia’s third-largest economy.
The funding will be used to bump up its overall employee base to 47,000 over the next 12-24 months, up from its current 32,000.
Founded in 2012 by Krishnan, Manju Dhawan, Sanjeev Saxena and K Satyanarayana, Ecom Express currently operates in over 2,400 cities, and reaches 26,000-plus pin codes.