Ecom Express, a leading logistics firm based in Gurugram, is set to raise Rs 1,424 crore (approximately $172 million) through a rights issue aimed at existing investors. This fundraising initiative marks Ecom Express’s first major capital infusion of the year, aimed at bolstering its operational capabilities and expansion efforts.
According to regulatory filings accessed from the Registrar of Companies, Ecom Express will issue 15,70,000 Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 9,071 each.
The funds raised will be utilized for general corporate purposes, capital expenditure, and operational expenses, reaffirming the company’s commitment to strengthening its logistical infrastructure.
Established in 2012, Ecom Express has positioned itself as a key player in the logistics sector, offering services across more than 2,700 towns and 27,000 pin codes in India. The company boasts a workforce of over 50,000 employees and operates a network of more than 3,000 facility centers nationwide.
Financially, Ecom Express reported a 21.9% increase in revenue from operations to Rs 2,548 crore in FY23 from Rs 2,090 crore in FY22, with courier services contributing to 90% of its revenue stream. However, the company’s losses surged fourfold to Rs 375 crore in FY23 from Rs 91 crore in the previous financial year, highlighting challenges amid expansion efforts.
The current rights issue underscores Ecom Express’s strategic approach to fortify its market position and sustain growth momentum in the competitive logistics landscape. The company is yet to release its annual report for FY24, which is anticipated to provide further insights into its operational performance and strategic initiatives.