Ecom Express Secures Rs 1,424 Crore in Funding Through Rights Issue
Ecom Express, a leading Indian logistics company, has announced plans to raise Rs 1,424 crore (approximately $172 million) through a rights issue. This marks the company’s first funding round of 2024.
Details of the Rights Issue
The company’s board has approved the issuance of 1,570,000 compulsorily convertible preference shares (CCPS) at an issue price of Rs 9,071 each. This fundraising strategy will allow Ecom Express to secure capital from existing investors. The funds raised will be directed towards various aspects of the company’s operations, including general corporate purposes, capital expenditures, and ongoing operational expenses.
Company Background and Growth Trajectory
Established in 2012, Ecom Express has built a robust logistics network across India. The company boasts a presence in over 2,700 towns and caters to deliveries across 27,000 pin codes. With a workforce exceeding 50,000 employees, Ecom Express operates a network of more than 3,000 facility centers to ensure efficient service delivery.
Previous Funding Activities
In October 2022, Ecom Express effectively gotten $39 million in financing from existing financial backers, including CDC Gathering and Accomplices Gathering. It’s significant that the organization recently investigated the chance of a first sale of stock (Initial public offering) in February 2022, meaning to raise up to Rs 4,860 crore ($648 million). Notwithstanding, the arrangement was hence required to be postponed.
Financial Performance
Ecom Express has seen predictable income development. The organization’s income from tasks for the monetary year 2023 (FY23) arrived at Rs 2,548 crore, mirroring a 21.9% expansion contrasted with Rs 2,090 crore in FY22. Quite, messenger administrations stay the essential wellspring of income, contributing almost 90% to the organization’s absolute pay. While income has shown positive development, Ecom Express’ misfortunes have likewise expanded. The organization revealed an overal deficit of Rs 375 crore in FY23, which addresses a critical leap from the Rs 91 crore misfortune caused in the past monetary year. The yearly report for FY24 is yet to be recorded.