Delhivery is to Acquire Ecom Express for Worth ₹1,407 crore | Major Consolidation in India’s Logistic Sector

Stocks, Stocks to Watch Today, 7th April 2025: Delhivery, a listed Indian public company is expected to be in focus today on Monday, 7th April. The logistics firm announced plans to acquire its rival, Ecom Express, in an all-cash deal worth ₹1,407 crore. This acquisition would lead to a sharp drop in the valuation of the Gurgaon-based logistic company, Ecom Express. 

Acquisition’s Impact on Ecom Express

On Saturday, April 5th, Delhivery’s board met and approved the acquisition of Ecom Express. Lastly, the Ecom Express raised private equity at a valuation of over ₹7,300 crore. Experts claimed that the nearly 80% decline in the valuation of this company showcases the broader business challenges faced as the logistic player in India. Delhivery is to acquire a 99.4% stake in Ecom Express. 

The rise of Valmo, Meesho’s in-house logistics unit, could be the key reason behind Ecom Express’s woes. Meesho was contributing more than 50% of the Ecom Express shipment numbers. Its total revenue for FY24, which closed on March 31, 2024, was ₹2,607 crore ($314 million), a slight rise over FY23’s ₹2,548 crore. But during the same period, its losses reduced by 40% to ₹256 crore. 

Nevertheless, the acquisition was probably necessitated by the company’s financial condition and pressure from the market. It had previously attempted to list at a valuation of $700 million and had also got the IPO cleared by the Securities and Exchange Board of India (SEBI). But such plans were eventually dropped.

Acquisition’s Impact on Delhivery

As per Delhivery, acquisition of Ecom Express will allow them to enable scale, efficiency, and better client services through the ongoing investments in EV segment, technological areas, research and development, and automation. This acquisition would help Delhivery to serve customers better quality services. 

Delhivery can gain from this acquisition despite Ecom Express being dismayed. Even though Delhivery’s share price declined 1.80% on Friday, 4th April on the National Stock Exchange (NSE), the market authority and product line of the company could be greatly enhanced by the acquisition of a leading competitor such as Ecom Express. 

What Experts Claim

Experts said that the deal seems to be value-accretive for Delhivery. But the efficiencies and benefits that this major acquisition aimed to capture can happen only if Ecom Express operations are integrated successfully. In the Indian logistics sector, where scale and efficiency matter more than ever in the battle against competition, this will be a game-changer.

Also Read: Stock Market Today | Sensex Down By 3.6%: Nifty 50 Down 900 Points

Completion of Acquisition

As per the decided terms and conditions, the acquisition of Ecom Express by Delhivery is to be completed in the coming 6 months. It is also subject to approval from the Competition Commission of India. Ecom Express will become a subsidiary of Delhivery. 

Ecom Express is expected to be exited by the Investors, including British International Investment, Partners Group, and Warburg Pincus. 

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