CDC Group, the UK’s development finance institution and impact investor in South Asia and Africa, today announced that it has closed a $36 million equity investment in Warburg Pincus backed Ecom Express, one of the fastest-growing tech enabled end to end Indian logistics companies.
Ecom Express is renowned for its speed, safe and reliable nation-wide express delivery services for the e-commerce industry. Ecom Express’s expansive network is best in the industry, reaching over 90% of the India’s population, with more than 85% of its presence in Tier 2/3/4 cities and hinterlands. The network empowers and connects sellers and consumers, thereby enabling growth of the e-commerce industry and its surrounding ecosystem. This will also support the development of smaller, harder to reach towns as they are brought into the ecommerce network, giving local people access to goods and services they otherwise may not have.
In addition to network expansion and augmentation, CDC’s equity injection enables Ecom Express to significantly accelerate job creation from c.32,000 employees to c.47,000 within the next 1-2 years. This will be complemented by a distinct focus on increasing the number of employed women in the workforce, bringing further diversity.
Furthermore, CDC’s commitment to working with investees to address transformational climate urgency measures will be demonstrated through this partnership with Ecom Express. CDC, as part of the initiatives, will work with Ecom Express to transition a proportion of its distribution fleet to electric vehicles and sponsor a road safety programme for its drivers and fleet operators.
Srini Nagarajan, Managing Director and Head of Asia CDC, said:
“In Ecom Express, we have a partner company that recognises the vital importance of creating a genuinely sustainable and gender inclusive business. I am delighted that, through our expertise in impact investing in support of the UN’s Sustainable Development Goals, we will be adding value far beyond our capital contribution.
We are dedicated to responsibly investing our capital in India, with over $1.7bn currently committed to local businesses. We have the same amount again to invest over the next few years and look forward to working with many more businesses that are sustainably, environmentally and socially conscious as Ecom Express”.
T.A. Krishnan, Cofounder and Chief Executive Officer of Ecom Express said,
“We are truly delighted to welcome CDC as our partner. The infusion of capital will help us further expand our delivery footprint in connecting towns and rural centers across the country. Besides expanding reach, the company plans to invest in technology, deploy advanced parcel sortation systems, strengthen network reliability and infrastructure, and finally, make development impact with job creation, environmentally responsible initiatives and gender diversity. These initiatives will help us deliver superior customer experience and build a scalable and sustainable business. We look forward to leveraging CDC’s expertise in driving businesses with socially responsible and environmental initiatives and the firm’s global network of relationships.”
Clare Murray, CDC group, +44 20 7036 4353 / firstname.lastname@example.org
Notes to Editors:
About CDC Group
- CDC Group is the world’s first impact investor with over 70 years of experience of successfully supporting the sustainable, long-term growth of businesses in South Asia and Africa.
- CDC is a leading player in the fight against climate change and a UK champion of the UN’s Sustainable Development Goals – the global blueprint to achieve a better and more sustainable future for us all.
- The company has investments in over 1,200 businesses in emerging economies and a total portfolio value of £5.8bn. This year CDC will invest over $1.5bn in companies in Africa and Asia with a focus on fighting climate change, empowering women and creating new jobs and opportunities for millions of people.
- CDC is funded by the UK government and all proceeds from its investments are reinvested to improve the lives of millions of people in Africa and South Asia.
- CDC’s expertise makes it the perfect partner for private investors looking to devote capital to making a measurable environmental and social impact in countries most in need of investment.
About Ecom Express:
- Ecom Express Private Limited is a leading end-to-end technology enabled logistics solutions provider to the Indian e-commerce industry. Headquartered in Gurugram, Ecom Express was incorporated in 2012 by T.A. Krishnan, Manju Dhawan, K. Satyanarayana and Sanjeev Saxena with their 100+ years of cumulative experience in the Indian logistics and distribution industry.
- The company has established its presence in the industry due to a differentiated business model which is built on delivery service capability, scalability, customization and sustainability. Ecom Express uses its cutting-edge technology and automation solutions to enable first-mile pickup, processing, network optimization and last mile delivery. The company’s products include Ecom Express Services (EXS), Ecom Fulfilment Services (EFS) and Ecom Digital Services (EDS).
- Ecom Express has its presence in all 29 states of the country and operates in over 2400 towns across 25,000+ PIN-codes in India. The company is the first private logistics company in India to envision a full-state coverage strategy i.e. the capability to reach every doorstep in every village in a state. This full-state coverage is offered in 20 states including Andhra Pradesh, Assam, Bihar, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal. Through this deep reach strategy, the company has a capability to deliver to over 1.2 billion people i.e. 92%+ of India’s population.