Delhivery to make Ecom Express its subsidiary in a deal worth up to ₹1,407 crore, pending regulatory nod.
Delhivery has announced the acquisition of rival logistics firm Ecom Express for a consideration not exceeding ₹1,407 crore. The transaction, subject to regulatory approvals and standard closing conditions, will result in Ecom Express becoming a subsidiary of Delhivery.
According to a regulatory filing, Delhivery’s board has approved the execution of a share purchase agreement involving Ecom Express and its shareholders. The acquisition is expected to be completed within six months, although the timeline may be extended with mutual consent. Approval from the Competition Commission of India is awaited.
Delhivery CEO Sahil Barua stated that the move is aimed at improving cost efficiency, reach, and speed across the logistics sector, bolstered by continued investment in infrastructure and technology. Ecom Express Founder K Satyanarayana welcomed the acquisition as a new phase of growth that will benefit businesses across India.
The merger comes amid a history of rivalry, with Delhivery previously raising concerns over Ecom Express’s reporting practices, particularly in shipment volume calculations during its draft red herring prospectus stage. Delhivery accused Ecom Express of inflating shipment numbers by double-counting returns, a practice Delhivery does not follow.
Despite past tensions, Delhivery acknowledged the strength of Ecom Express’s network and team, calling it a solid base for integration. The acquisition is seen as a strategic step to consolidate logistics services and expand operational capabilities across the country.
Source: Business Standard
