Major Consolidation Move in India’s E-commerce Logistics Space as Delhivery Takes Over Struggling Competitor
In a significant development reshaping India’s logistics landscape, Delhivery Limited has announced the acquisition of rival logistics provider Ecom Express in an all-cash transaction valued at ₹1,407 crore (approximately $169.5 million). The deal, which represents one of the largest consolidations in the Indian logistics sector, will see Delhivery acquiring at least 99.4% of Ecom Express’s issued and paid-up share capital on a fully diluted basis.
The acquisition announcement came through a regulatory filing to stock exchanges on Saturday, following approval from Delhivery’s board of directors. Both companies have signed a Share Purchase Agreement (SPA), with the transaction expected to close within the next six months, subject to necessary regulatory approvals, including clearance from the Competition Commission of India.
A Distressed Sale Amid Challenging Market Conditions
Industry analysts characterize this as a distressed sale for Ecom Express, which was previously valued at over $800 million (approximately ₹7,300 crore) during its last funding round. The current acquisition price represents a dramatic valuation decline of around 78% from its previous peak, highlighting the challenging conditions facing the company.
Satish Meena, advisor at market research firm Datum Intelligence, explained the primary catalyst behind Ecom Express’s struggles: “The biggest challenge for them arose from the change in Meesho’s business structure, which moved to its in-house logistics service Valmo. Ecom Express got about 40%-50% of its business from Meesho. The market is such that it’s very difficult to replace even 10% of a company’s business.”
This dependence on Meesho proved particularly damaging when the e-commerce platform shifted to its internal logistics unit Valmo, which reportedly accounted for more than half of Ecom Express’s shipment volume.
Financial Performance and IPO Ambitions
Founded in 2012 and headquartered in Gurugram, Ecom Express had been preparing for public markets before this acquisition. The company had filed for a ₹2,600 crore IPO in August 2024 and received approval from the Securities and Exchange Board of India (SEBI) to proceed with the offering. However, it had deferred its IPO plans multiple times for undisclosed reasons.
For the fiscal year ending March 31, 2024, Ecom Express reported revenue of ₹2,607.3 crore, a slight increase from ₹2,548.1 crore in the previous fiscal year. The company managed to reduce its losses by approximately 40% to ₹256 crore during the same period.
Prior to the acquisition, Ecom Express was backed by several prominent investors, with Warburg Pincus, British International Investment, and Partners Group collectively holding over 80% shareholding in the company. These investors are expected to exit following the completion of this transaction.
Interestingly, Delhivery had previously alleged that Ecom Express presented misleading figures in its draft IPO documents, adding another layer of complexity to the relationship between the two companies before the acquisition.
Strategic Rationale and Future Integration Plans
Delhivery has articulated a clear strategic rationale for this acquisition, emphasizing the scale-driven nature of the logistics business. In its statement, the company noted that “logistics is a scale-driven business where economies of scale lead to higher efficiencies, enabling players to provide higher quality services at more competitive prices.”
The increased scale resulting from this acquisition is expected to allow Delhivery to invest more effectively in:
- Network expansion
- Quality improvements through automation and electric vehicles
- Advanced technology implementations
- Research and development in areas such as robotics and drones
Sahil Barua, Managing Director & CEO of Delhivery, emphasized the importance of continually improving logistics efficiency in India’s growing economy: “The Indian economy requires continuous improvements in cost efficiency, speed and reach of logistics. We believe this acquisition will enable us to service customers of both companies better through continued bold investments in infrastructure, technology, network, and people. The founders and management of Ecom Express have established a high-quality network and team, creating a strong foundation to integrate into Delhivery’s operations.”
From Ecom Express’s perspective, K. Satyanarayana, one of the company’s founders, acknowledged the strategic fit of the combination: “Delhivery is among India’s leading fully integrated logistics service providers with significant scale advantages and will be the ideal shareholder for Ecom Express’s next phase of growth. With this acquisition and its inherent synergies, businesses across India as well as the logistics industry itself will benefit immensely through the combination of two like-minded players.”
Complementary Business Operations
Both companies bring significant operational capabilities to the combined entity:
Ecom Express, founded in 2012 by Manju Dhawan, K. Satyanarayana, Late T.A. Krishnan, and Late Sanjeev Saxena, provides comprehensive logistics services including first-mile pickup, processing, network operation, last-mile delivery, reverse logistics, and returns management under its flagship Ecom Express Services. The company also offers supply chain, storage, and fulfillment solutions through its Ecom Fulfillment Services division. Since its inception, Ecom Express claims to have delivered nearly 2 billion shipments to 97% of Indian households.
Delhivery, established in 2011, delivers a wide range of logistics services including express parcel transportation, PTL (part truckload) freight, TL (truckload) freight, cross-border services, supply chain solutions, and technology services. The company has fulfilled over 3.4 billion shipments since its inception and works with more than 39,000 customers, including large and small e-commerce participants, SMEs, and enterprises.
Market Implications and Industry Outlook
This acquisition represents a significant consolidation in India’s e-commerce logistics space, which has been facing increasing pressure to demonstrate profitability and operational efficiency. While the broader market conditions have been challenging for logistics companies, this deal appears potentially value-accretive for Delhivery if the integration proceeds smoothly.
Post-acquisition, Ecom Express will operate as a subsidiary of Delhivery, with the combined entity likely to benefit from greater operational synergies, expanded geographic reach, and enhanced technological capabilities.
The transaction also reflects the broader trend of consolidation in India’s startup ecosystem, particularly in sectors that had previously seen significant capital infusion but are now facing greater scrutiny regarding profitability and sustainable business models.
For Delhivery, which recently appointed Vani Venkatesh as Chief Business Officer in February 2025, this acquisition represents a significant strategic move to strengthen its market position and create a more robust logistics platform capable of serving India’s rapidly evolving e-commerce landscape.
As the logistics sector continues to evolve, the success of this acquisition will likely depend on how effectively Delhivery can integrate Ecom Express’s operations, leverage complementary strengths, and capitalize on the increased scale to deliver enhanced services to customers across India.
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