Ecom Express: Pioneering End-to-End Logistics Solutions
Company Profiles
By Chayanika Goswami and Manisha Mishra
November 14, 2023 — 14 min read
Ecom Express: A Leader in End-to-End Logistics Solutions
In the thriving world of e-commerce, efficient logistics are crucial. According to a KPMG report, the e-commerce retail logistics market, valued at USD 1.35 billion in 2018, is projected to grow by 36% by 2023. Recognizing this surge in demand, four former Blue Dart employees launched Ecom Express in 2012. Since then, the company has become a major player in nationwide express delivery services for the e-commerce sector. Let’s delve into the journey and achievements of this innovative startup, which has positioned itself as a top delivery service provider in India.
Company Overview
- Name: Ecom Express
- Headquarters: Gurugram
- Founders: T.A. Krishnan, K. Satyanarayana, Manju Dhawan, and the late Sanjeev Saxena
- Sector: Logistics
- Founded: 2012
- Total Funding: $485.4 million (2021)
- Revenue: $167.48 million (Rs 1,254 crore in FY20)
- Valuation: $760 million (August 2022)
- Parent Organization: Ecom Express Limited
- Website: ecomexpress.in
About Ecom Express
Founded in 2012, Ecom Express is a leading logistics service provider specializing in express, digital, and fulfillment services. The company’s express services include:
- Ecom Express Service: Pickup from sellers or warehouses and delivery to end customers.
- Ecom Ground Service: Transport of bulky products with automated tracking systems.
Their digital services include biometric verification and cash, cheque, and document collection. Additionally, their fulfillment services offer warehousing and order management with customizable options for location and space.
Industry Landscape
The Indian logistics sector was valued at $160 billion in August 2021, with over 22 million employees. Expected to grow at a CAGR of 10%, reaching $215 billion by 2022, Ecom Express has emerged as a prominent player in this rapidly expanding industry.
Startup Story
Ecom Express was founded by four seasoned professionals from Blue Dart Express—Sanjeev Saxena, Manju Dhawan, K. Satyanarayana, and T.A. Krishnan. In 2012, as the e-commerce market was beginning to take off, these entrepreneurs envisioned a logistics solution tailored for the growing B2C market. The company began operations in January 2013 and quickly gained traction in the burgeoning e-commerce sector.
Unique Selling Propositions
Ecom Express distinguishes itself through several key features:
- Extensive Reach: Operating in over 2,400 towns and cities across India.
- Advanced Technology: Utilizes GPS-enabled vehicles, efficient route optimization, real-time tracking, and electronic proof of delivery.
- Comprehensive Services: Offers seamless experiences with cash-on-delivery and quality check-enabled reverse logistics.
Founders and Team
- T.A. Krishnan: Co-founder and former CEO, with over 37 years of experience, including a tenure as VP at Blue Dart Express.
- K. Satyanarayana: Co-founder and Director, with 26 years at Blue Dart Express.
- Manju Dhawan: Co-founder and Head of Customer Care, bringing 25 years of industry expertise.
- Late Sanjeev Saxena: Co-founder, remembered for his strategic and operational contributions until his passing in 2020.
The company boasts a team of over 19,000 employees.
Mission and Vision
Ecom Express aims to simplify e-commerce shipping with its mission to “Provide end-to-end technology-enabled logistics solutions to small and large e-commerce players.”
Name, Tagline, and Logo
- Tagline: “We Offer Possibilities In Every Direction”
- Alternative Tagline: “Simple Solutions. High Impact”
The name ‘Ecom Express’ reflects its commitment to efficient e-commerce logistics.
Business Model and Revenue
Operating on a B2B model, Ecom Express caters to e-commerce and other sectors like banking and finance. Major clients include Amazon, Flipkart, Myntra, and Paytm. The company primarily generates revenue through delivery services and related commissions.
Funding and Investors
Ecom Express has raised $524.4 million over multiple funding rounds, with the latest round bringing in $39 million from Partners Group in October 2022. The company was last valued at $760 million in August 2022.
IPO Plans
Ecom Express is preparing for an IPO worth Rs 4,860 crore ($648 million), with plans for a public issue and an offer for sale from existing investors. This move will bring it closer to filing its DRHP with SEBI.
ESOPs and Investments
The company’s ESOP scheme, ECOM ESOP SCHEME 2022, consolidates previous plans and includes 126,000 stock options valued around Rs 115 crore. Ecom Express has also invested in Bangladesh-based Paperfly.
Partnerships
- ONDC: Partnered to provide logistical services to small sellers and merchants.
- what3words: Collaborates to ensure precise delivery using cutting-edge location technology.
Awards
Ecom Express has received numerous accolades, including:
- 2017: Excellent Position Under E-commerce Logistics – CII Scale Awards
- 2018: Fastest Setting up of Delivery Centers – LIMCA Book of Records
- 2019: Fastest Growing Logistics Company – Indian Oil Logistics Excellence Awards
Competitors
Ecom Express faces competition from Ekart Logistics, Delhivery, Xpressbees, and Shadowfax.
Growth and Revenue
From its initial setup with 42 delivery centers and 300 employees, Ecom Express now operates 3,000+ branches in over 2,700 cities with more than 50,000 employees, handling 800,000 shipments daily. The company’s revenue has grown significantly, with expenses rising from Rs 1,613 crore in FY21 to Rs 2,269 crore in FY22.
Ecom Express’s impressive growth and strategic advancements underscore its position as a leader in India’s logistics sector.