By Business Connect Magazine | April 21, 2025
In a significant move shaking up India’s logistics sector, Delhivery Limited has sought approval from the Competition Commission of India (CCI) for its ₹1,407 crore acquisition of a 99.4% stake in rival Ecom Express Limited. The deal, announced earlier this month, marks one of the largest consolidations in the third-party logistics (3PL) space and is poised to reshape the competitive landscape.
Strategic Consolidation in Logistics
Announced on April 5, 2025, Delhivery’s all-cash acquisition of Ecom Express aims to bolster its scale and operational efficiency. The deal, valued at ₹1,407 crore ($169.5 million), comes at a steep 80% discount from Ecom Express’s June 2024 valuation of ₹7,300 crore, signaling a distress sale for the Gurugram-based logistics firm. The companies have now submitted a notice to the CCI, asserting that the transaction will not adversely affect competition in the logistics market.
Delhivery, a leading integrated logistics provider, stated, “The proposed transaction will not lead to any change in competitive dynamics or cause any appreciable adverse effect on competition in any market in India.” The acquisition is expected to enhance Delhivery’s service offerings by integrating Ecom Express’s network, which includes 9 million sq. ft. of warehousing space and 3,750 facilities.
Why This Matters
The acquisition follows a challenging period for Ecom Express, which faced financial strain after losing significant business from its top client, Meesho, to the latter’s in-house logistics arm, Valmo. Ecom Express reported a revenue of ₹2,609 crore in FY24 but posted a net loss of ₹398 crore in the first nine months of FY25, largely due to non-cash accounting adjustments. Delhivery plans to mitigate these losses through cost-cutting and operational synergies, leveraging near-total customer overlap (100% in customer count, 95% in revenue) to streamline integration.
Sahil Barua, MD and CEO of Delhivery, emphasized, “This acquisition will enable us to service customers of both companies better through bold investments in infrastructure, technology, network, and people.” K. Satyanarayana, founder of Ecom Express, added that Delhivery’s scale makes it the ideal partner for Ecom Express’s next growth phase.
What’s Next?
The CCI’s approval is critical, as Indian regulations mandate clearance for mergers and acquisitions exceeding specific thresholds to ensure fair competition. The deal, expected to close within six months, will see Ecom Express operate as a subsidiary of Delhivery, with major investors like Warburg Pincus, Partners Group, and British International Investment exiting their stakes.
This acquisition strengthens Delhivery’s position against competitors like Blue Dart and DTDC, especially in the e-commerce and quick-commerce segments. With investments planned in automation, electric vehicles, and robotics, Delhivery aims to drive cost efficiency and service quality.
Follow Business Connect Magazine for the latest updates on this transformative deal and its impact on India’s logistics industry.
