Through a right issue, logistics company Ecom Express is seeking to raise Rs 1,424 crore, or roughly $172 million, from current investors. This will be the company’s first investment round of the year, based in Gurugram.
According to Ecom Express’s regulatory filing retrieved from the RoC, the board approved a special resolution to issue 15,70,000 CCPS at an issue price of Rs 9071 each in order to raise Rs 1,424 crore.
Investments will be used by the business, among other things, for operating costs, capital expenditures, and general corporate purposes.
Ecom Express was established in 2012 and states that it offers logistics services in more than 2,700 Indian towns and 27,000 pin codes. It has more than 3,000 facility centers and more than 50,000 employees.
Ecom Express raised $39 million in October 2022 from current investors, such as Partners Group and CDC Group. The company authorized the issuance of up to Rs 4,860 crore, or $648 million, in shares for public offering in February 2022. The company did, however, postpone its IPO plan.
With the exception of the current funding, the company has raised more than $250 million through debt and equity to date.
From Rs 2,090 crore in FY22 to Rs 2,548 crore in FY23, Ecom Express’s operating revenue climbed by 21.9%. Ninety percent of the company’s income came from its courier services. In the meantime, the company’s losses increased 4X from Rs 91 crore to Rs 375 crore in FY23.
The firm is yet to file its annual report for FY24.
