Delhivery to acquire Ecom Express for ₹1,407 crore amid layoffs and pause on IPO plans

Third-party logistics company Delhivery will acquire Ecom Express Limited for ₹1,407 crore. The company informed the exchanges on Saturday, April 5, that the Board has approved to buy nearly 99.4% of shares of Ecom Express.

"We wish to inform you that the board of directors of Delhivery Limited ("the Board" and "the Company", respectively) at its meeting held today, ie, April 5, 2025, inter-alia, has considered and approved the acquisition of shares equivalent to at least 99.4% of the issued and paid up share capital, on a fully diluted basis, of Ecom Express Limited ("Ecom"/"Target Company"), for a purchase consideration not exceeding INR 1,407 Crore," the company said in an exchange filing.

The completion of the acquisition is subject to approval from the Competition Commission of India. Following the acquisition process, Ecom Express will become a subsidiary of Delhivery.

Speaking on the latest acquisition, Sahil Barua, MD and CEO, Delhivery said, “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."

Ecom Express layoffs and IPO plans

In February, Mint reported that Ecom Express had laid off nearly 500 employees and paused its plans to launch an initial public offering (IPO) of its shares in an attempt to cut costs. The company’s expenses marginally rose to ₹2,921.5 crore in FY24 from ₹2,902.8 crore in FY23. Ecom Express reported a 2.2% growth in revenue to ₹2,609.2 crore in FY 24, and its losses declined to ₹255.8 crore from ₹428.1 crore in the previous year.

The company had nearly 15,600 employees and associates and delivered goods to more than 27,000 pin codes, according to Ecom Express website.

The report said it had put a hold on plans to go public due to volatile market conditions. The Securities and Exchange Board of India (Sebi) approved the IPO in December, and it is valid until later this year. In August, filed papers to raise ₹2,600 crore through IPO, which included a fresh infusion of ₹1,284.5 crore worth of shares and an offer-for-sale.

Delhivery's latest launch

Meanwhile, in January, Delhivery launched Rapid Commerce, a sub-2-hour delivery service. The new facility aims to help direct-to-consumer brands and e-commerce platforms reduce delivery timelines and improve customer experience.