Acquisitions11 Apr 2025, 05:57 am
Delhivery to Acquire Controlling Stake in Ecom Express: Scaling Up for Greater Efficiency and Reach
AI Summary
Delhivery Limited has entered into definitive agreements for the acquisition of a controlling stake in Ecom Express Limited. The acquisition is expected to deliver further scale-driven operating efficiencies and greater reach to clients and their customers. The acquisition is subject to approval from the Competition Commission of India.
Key Highlights
- The acquisition aims to enhance Delhivery’s operating scale and further its vision to become the bedrock of commerce in India.
- Delhivery's integrated network model, larger scale, technology investments, and higher levels of automation have consistently delivered superior service quality and profitability.
- Ecom Express’ FY24 numbers were available in public domain as part of their DRHP. The unaudited financial information for IMFY25 shows a positive trend.
- There is close to 100% overlap in count of customers between Delhivery and Ecom Express, reducing potential integration risks.
- The acquisition is expected to improve utilization of Delhivery's network assets, overall profitability, and revenue from the Acquisition will be retained at Delhivery's high incremental gross margins.