Ecom Express raises Rs 100 crore
E-commerce logistics solutions provider Ecom Express has raised Rs 100 crore in Series A funding from Peepul Capital. The company plans to use the money to expand its footprint to 500 cities across India, and invest in technology and distribution capabilities.
The Ecom Express fund-raise comes close on the heels of another e-commerce logistics services company Delhivery closing a $35 million (Rs 211 crore) fund raise led by Multiples Alternate Asset Management. It had previously raised Rs 5 crore in angel funding from Oliphans Capital.
Ecom Express, which launched in January last year, started with operations in 35 towns in North India with around 250 employees. Within 18 months, the company has expanded its presence to over 100 cities and towns and its employment to 3,000. It is now expanding its footprint in southern and western parts of the country.
"We delivered 5 million packages in the last financial year and we plan to deliver about 20 million packages in the current fiscal.
As e-commerce companies are changing gears from an inventory-led model to a marketplace model, last mile delivery is a key component for new customer acquisition," the company's co-founder TA Krishnan said.
"The next wave of growth for ecommerce companies will come from tier 2 and 3 cities, those beyond the top 20 cities," said Srini Vudayagiri, investment director at Peepul Capital Advisors.
A significant part of the funding will be deployed to make the technology platform robust and automate solutions in the first mile, last mile and pick-up processing. The firm also intends to develop an effective employee attendance and tracking mechanism to measure productivity.
"We plan to be 10,000 people in the next 5 years," Krishnan said.
The Ecom Express fund-raise comes close on the heels of another e-commerce logistics services company Delhivery closing a $35 million (Rs 211 crore) fund raise led by Multiples Alternate Asset Management. It had previously raised Rs 5 crore in angel funding from Oliphans Capital.
Ecom Express, which launched in January last year, started with operations in 35 towns in North India with around 250 employees. Within 18 months, the company has expanded its presence to over 100 cities and towns and its employment to 3,000. It is now expanding its footprint in southern and western parts of the country.
"We delivered 5 million packages in the last financial year and we plan to deliver about 20 million packages in the current fiscal.
As e-commerce companies are changing gears from an inventory-led model to a marketplace model, last mile delivery is a key component for new customer acquisition," the company's co-founder TA Krishnan said.
"The next wave of growth for ecommerce companies will come from tier 2 and 3 cities, those beyond the top 20 cities," said Srini Vudayagiri, investment director at Peepul Capital Advisors.
A significant part of the funding will be deployed to make the technology platform robust and automate solutions in the first mile, last mile and pick-up processing. The firm also intends to develop an effective employee attendance and tracking mechanism to measure productivity.
"We plan to be 10,000 people in the next 5 years," Krishnan said.
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