Ecom Express set to raise over $170 Mn via right issue

Logistics firm Ecom Express is raising Rs 1,424 crore (approximately $172 million) from existing investors via right issue. This will be the first round of investments of the Gurugram-based company this year.

The board at Ecom Express has passed a special resolution to issue 15,70,000 CCPS at issue price of Rs 9071 each to raise Rs 1,424 crore, its regulatory filing accessed from the RoC shows.

The company will use investment for general corporate purposes, capital expenditure, and operating expenses among others.

Launched in 2012, Ecom Express claims to provide logistics services in over 2,700 towns and 27,000 pin codes in India. It employs over 50,000 people and has more than 3,000 facility centers.

In October 2022, Ecom Express raised $39 million from existing investors including CDC Group and Partners Group. In February 2022, the firm approved a fundraise of up to Rs 4,860 crore or $648 million via a public issue of shares. However, the firm put a hold on its IPO plan.

The company has raised more than $250 million through equity and debt to date (excluding the current funding).

Ecom Express’ revenue from operations increased by 21.9% to Rs 2,548 crore in FY23 from Rs 2,090 crore in FY22. The company drew 90% of its revenue from its courier services. Meanwhile, the firm’s losses jumped 4X to Rs 375 crore in FY23 from Rs 91 crore in the previous financial year. The firm is yet to file its annual report for FY24.