Ecom Express Uses Rights Issue to Secure $172 Million from Investors

Ecom Express Private Limited, an e-commerce logistics company with its headquarters in Gurugram, is using a rights issue to raise roughly $172 million from current investors, according to DealStreetAsia.

The board of Ecom Express has authorized a special resolution to issue 15,70,000 compulsory convertible preference shares at an issue price of Rs 9071 apiece to raise the cash, the newspaper stated quoting the company’s recent RoC filings.

According to it, the money will be used for a variety of purposes, including operating costs, capital expenditures, and general company purposes.

It has raised $39 million from its current backers, CDC Group and Partners Group, back in October 2022. The UK government’s development finance organization, CDC Group, contributed an additional $20 million to the business in March 2021.

It was established in 2012 and offers small and large e-commerce companies in over 2,700 towns and 27,000 pin codes in India end-to-end technology-enabled logistics solutions. Ecom Express Services, Ecom Fulfilment Services, and Ecom Digital Services are among the offerings of the company. The company has more than 3,000 facility centers and over 50,000 employees.

Following its establishment in India, it made its first foray outside of the nation in early 2021 when it invested in Paperfly, the biggest third-party e-commerce logistics company in Bangladesh.

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