The supply chain and logistics company Trackon has been acquired by XpressBees. The deal also represents the logistics startup with a focus on e-commerce’s first acquisition since its founding in 2015.
According to a report in ET, the acquisition will help XpressBees break into the SME courier market, and the company will use its current network to expand Trackon across the nation. The amount of the transaction was kept confidential.
According to the report, Trackon’s founder and CMD Prabhat Kumar Anand will continue to run the company on his own for at least the next two years. As part of the agreement, the other three co-founders, Pramod Kumar Singh, Dinesh Rautela, and Yoginder Kumar Dabas, resigned from the business and are moving on.
With plans to expand its services to 12,000 pin codes over the following few years, the 20-year-old Trackon claims to be a Rs 350 crore revenue-generating business that serves 5,600 pin codes nationwide. Even though the business has not yet submitted its annual financial report for FY23, it reported operating revenue of Rs 283 crore in FY22 and achieved profitability with Rs 8.22 crore in profits in books.
On the other hand, XpressBees, which had revenue of almost Rs 2,000 crore as of FY22, is the third-largest new-age logistics and supply chain company after Ecom Express and Delhivery. Its F23 numbers are still forthcoming.
After raising $300 million in February 2021, XpressBees became a unicorn and, since August 2022, has facilitated secondary transactions totalling $65 million. According to a recent Bloomberg report, the Amitava Saha-led company will receive a $100 million investment from the Ontario Teachers’ Pension Plan Board.
