Delhivery to Acquire Ecom Express for ₹1,407 crore Amid Layoffs and Pause on IPO Plans

In a significant consolidation move in India’s logistics sector, Delhivery has announced the acquisition of rival Ecom Express for ₹1,407 crore. 

The deal comes at a turbulent time for Ecom Express, navigating layoffs, slowing demand, and paused IPO ambitions amid broader economic uncertainty.

Delivery to Acquire Ecom Express

The acquisition, once completed, will make Ecom Express a subsidiary of Delhivery, subject to regulatory approvals and customary closing conditions, the company said in an exchange filing on Saturday.

"We wish to inform you that the board of directors of Delhivery Limited at its meeting held today, ie, April 5, 2025, inter-alia, has considered and approved the acquisition of shares equivalent to at least 99.4% of the issued and paid-up share capital, on a fully diluted basis, of Ecom Express Limited, for a purchase consideration not exceeding INR 1,407 crore," the company said in the exchange filing.

“The Indian economy requires continuous improvements in cost efficiency, speed, and reach of logistics. We believe this acquisition will enable us to service customers of both companies better,” said MD and CEO Sahil Barua. 

"This acquisition marks a new growth phase for Ecom Express, and the combined strengths of both companies will drive substantial benefits for businesses across India and the logistics industry as a whole," Ecom Express founder K Satyanarayana added.

The completion of the acquisition is subject to approval from the Competition Commission of India. Following the acquisition process, Ecom Express will become a subsidiary of Delhivery.

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Ecom Express’ Layoffs & IPO Plans 

In an effort to reduce expenses, Ecom Express halted its preparations to issue its shares in an initial public offering (IPO) and lay off around 500 workers, according to a report by Mint. 

From ₹2,902.8 crore in FY23 to ₹2,921.5 crore in FY24, the company's expenses increased slightly. In FY24, Ecom Express's revenue increased 2.2% to ₹2,609.2 crore, while its losses decreased to ₹255.8 crore from ₹428.1 crore the year before.

According to the Ecom Express website, the company transported goods to over 27,000 pin codes and employed close to 15,600 colleagues and employees.

According to the report, it has halted its intentions to go public because of the unstable market. The IPO was authorised by the Securities and Exchange Board of India (Sebi) in December and is good until the end of this year.

In August, it filed papers to raise ₹2,600 crore through IPO, which included a fresh infusion of ₹1,284.5 crore worth of shares and an offer-for-sale.

Delhivery stated that integration of the two companies will begin immediately, with a focus on combining route planning, warehousing networks, and technology platforms. 

While both firms operate in similar segments, such as B2C parcel delivery and express logistics, the combined entity is expected to drive better economies of scale and enhance service levels for major e-commerce clients.

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