Like many other top tier startups, Ecom Express has also made its initial public offering (IPO) plan is currently on hold.
The company is working with investment banks
And barclays For the fundraising, according to people who know about its pitch to investors, and want to benchmark itself against Delhivery, the biggest third-party logistics player going public in May.
ET has been briefed about parts of its presentation to potential investors.
“IPOs now seem impossible in a market and they have raised investors to round up to $150 million. Negotiations are early, and a valuation has not been finalized yet,” said one person.
The Warburg Pincus-backed firm is valued at around $760 million, according to startup data tracking platform Tracxn.
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It has raised $260 million since its inception in 2012.
Ecom Express and JM Financial did not respond to ET’s queries. A Barclays spokesman declined to comment.
There is a narrow gap between Ecom Express and SoftBank-backed ExpressBees in terms of daily shipment volume, while Delhivery is the market leader.
According to industry sources, Ecom Express is witnessing around 1-1.1 million e-commerce shipments per day.
“They (Ecom Express) got a big boost from Singapore’s Shopee last year, but then the e-tailer suddenly closed shop in March. This has impacted the volumes in the new financial year.
The company’s plans for a new funding round come at a time when deals worth $100 million or more have slowed, both in India and abroad, due to macroeconomic changes and rising interest rates in the United States.
The company’s new fundraising was anticipated last year through an IPO, where its board approved a $600 million public share sale plan, although a significant portion of it would have been through an offer for sale.
According to reports, the company earned a revenue of Rs 1,254 crore in the financial year 2019-20 on a loss of over Rs 313 crore.
Its latest audited financials have not yet been filed with the Registrar of Companies.
Amid the global fall in tech stocks,
Delhivery’s IPO opens with gains from its issue price of Rs 487 per share, Its shares closed at Rs 506.95 on BSE on Thursday with marginal gains.
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Startups like Zomato and Paytm have seen significant decline in their value this year.
Paytm shares, in fact, closed soon after listing and is yet to reach its issue price of Rs 2,150 per share.
On Thursday, it closed at Rs 675.80 per share, down over 4% on the BSE.
Ecom Express was founded in 2012 by TA Krishnan, Manju Dhawan, K Satyanarayana and the late Sanjeev Saxena.
According to the company, it is present in 29 states and serves over 2,650 cities with 27,000 pin codes. Last year, it invested in Bangladesh’s Pepperfly to expand operations outside India.