Update: onli Currently, the company is focused on opening up new locations across North, South and West India.
Ecom Express further plans to expand its distribution capabilities in the East and North East in a phased manner within the next few months. “With these rounds of expansion, Ecom Express would offer reach across the country. Within the next three years, the company expects to cover nearly 500 towns and cities,” said Krishnan.
The New Delhi based company has recently raised undisclosed funds from a private equity firm Peepul Capital. However as per a Live mint’s report, the amount raised is INR 75.5 crores. As said, with this deal Peepul capital will now own a majority stake in Ecom Express and the money will be received in tranches.
The raised funds will be used for further expansion for manpower, technology and automation, in order to provide better services to the consumers.
An initiative of Ex-executives of logistics firm Blue Dart, the company is led by TA Krishnan. It launched its operations on 31st, January, 2013 with 35 towns and 42 Centers in Northern parts of the country. As of August, 2014, the company has presence over 100 towns and over 190 distribution centers across the country with around 3000 employees on board. It has 10 processing centres in Delhi-NCR, Bangalore, Hyderabad, Chennai, Kolkata, Ahmedabad and Pune.
Peepul Capital LLC is a Chennai based Institutional Investor which manages a corpus of approximately USD700 Million of growth-oriented investments that are India-centric. It has invested in companies such as Komli, Medplus and Cura.in.
On Monday, the rival firm Delhivery also raised USD 35 million in Series C led by Multiples Alternate Asset Management. The existing investors Nexus Venture Partners and Times Internet also participated in the round. Also, HoliSol, which specializes in 4 PL services, has raised USD 1.5 million last week only.
The India on-line retail market is growing at an explosive rate and research shows that it is projected to grow from $3 billion in 2013 to $ 23 billion by 2018. This opens up huge demand for logistic services, offering tremendous opportunities in this space both for the existing players and the new entrants.
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