Indian express parcel delivery company Delhivery has taken a controlling stake in its rival Ecom Express Limited for Rs~1,400 Cr. (US$162m) in a bid to expand its customer base and boost its e-commerce delivery market share.
Commenting on the deal, which was announced on April 5 and is subject to approval from the Competition Commission of India, Sahil Barua, MD and CEO of 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, 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.”
K Satyanarayana, founder of Ecom Express, added, “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.”