The impact investor and U.K Government’s development finance institution, CDC Group has invested $20 million in an India-based logistics startup, Ecom Express. This funding will support the end-to-end technology-enabled logistics service provider in advancing its sustainable impact and development agenda of enhancing skills and furthering job creation in India’s hinterland. This is CDC Group’s second funding to the startup after the initial investment made in December 2019.
With this fresh equity infusion, Ecom Express plans to create additional 8000 jobs to its initial target of 15000. The company will be prioritizing employment of women at its fulfillment centers, delivery centers, warehouses across the country. Besides that, the startup will use the funding for strategic initiatives including- new business initiatives, working capital requirements, growth-driven capital expenditure, potential strategic partnerships/acquisitions, and expansions.
Founded in 2012, Ecom Express is one of the emerging unicorns that provides end-to-end logistics solutions to the Indian e-commerce industry. The startup offers logistics services in more than 2650 towns across 27,000 plus pin codes in the country, covering more than 95% of India’s population. Its clients include India’s biggest e-commerce players, with the company delivering approximately 1 million shipments per day through its 2800 delivery centers. The company focuses on catering to the dynamic needs of electronic commerce industry which has shown an enormous growth in last few years.
In its maiden venture outside the country, after covering the length and breadth of India by getting to more than 1.2 billion people every day, the startup has invested recently in Paperfly, Bangladesh for $11 million. Paperfly is Bangladesh’s largest third-party e-commerce logistics company.
This fresh infusion of capital will enable Ecom Express to strengthen further its infrastructure operations, technological prowess, and network while assuring support to the company’s growth. According to the CDC Group, its recent investment in the startup reflects its support for the pan-India expansion and a commitment to channel its patient capital toward business that aligns with its development and sustainability goals.
Srini Nagarajan, Managing Director and Head of Asia, CDC group said in his statement that the company is delighted that this investment will further enhance India’s efforts to meet the UN Sustainable Development Goals of attaining gender equality and empowerment.
The CDC Group is a U.K. impact investor with more than 70 years of experience in supporting the long-term and sustainable growth of businesses in South Asia and Africa.