Ecom Express receives US$ 20 Million follow-on investment from CDC Group
CDC Group, the UK Government’s development finance institution and impact investor in South Asia and Africa, today announced that it has closed a US$ 20 Million investment round in Ecom Express, a leading tech-enabled end-to-end logistics solutions provider to the Indian e-commerce industry. This will be CDC’s second round of investment in Ecom Express after its initial investment in December 2019.
CDC’s latest commitment will support Ecom Express in advancing the company’s sustainable development and impact agenda of enhancing skills and boosting job creation in the Indian hinterlands. With the high demands for jobs in India, the country needs to create 8.1 million jobs a year to maintain its employment rate. This investment supports India’s effort as it will enable Ecom Express to create 8,000 new jobs in addition to an initial target of 15,000 roles – prioritising employing women for jobs at delivery centres, fulfilment centres and warehouses across the nation.
Additionally, Ecom Express will be utilizing the equity infusion by CDC Group investments for strategic initiatives such as growth driven capital expenditure, working capital requirements, new business initiatives, expansions, and potential strategic acquisitions/partnerships.
Srini Nagarajan, Managing Director and Head of Asia at CDC, said: “Ecom Express is playing a vital role in enabling e-commerce growth and expanding product reach across India. CDC’s additional investment in the company reflects our support for the company’s pan-India expansion, and a commitment to channelling our patient capital toward a business that aligns with our development, impact, and sustainability goals. Moreover, we are delighted that this investment will further enhance efforts India is making to meet the UN Sustainable Development Goals of achieving gender equality and empowerment, and promoting sustainable growth and decent work for all.’’
T. A. Krishnan, Co-founder and Chief Executive Officer of Ecom Express said, “We are extremely pleased to have a continued partnership with CDC. This fresh infusion of capital will enable us to further strengthen our network, infrastructure, operations, and technological prowess while assuring support to our next levels of growth. We are looking at a development led impact which includes strengthening our sustainability initiatives, job creation and diversity. In CDC, we have a partner which helps us become socially responsible and contribute to the society at large through these initiatives.”
Ecom Express recently invested USD 11 million (about Rs 80.6 crore) in Bangladesh’s largest third-party e-commerce logistics (3PL) firm, Paperfly. Through this investment, Ecom Express entered Bangladesh marking its maiden venture outside India, after having covered the length and breadth of the country reaching over 1.2 billion people daily.Back