CDC Group, the UK Government’s development finance institution and an impact investor in South Asia and Africa, has invested another $20 million in New Delhi-based logistics solutions provider Ecom Express.
CDC had earlier invested in Ecom Express in December 2019.
“CDC’s additional investment in the company reflects our support for the company’s pan-India expansion, and a commitment to channelling our patient capital toward a business that aligns with our development, impact, and sustainability goals. Moreover, we are delighted that this investment will further enhance efforts India is making to meet the UN Sustainable Development Goals of achieving gender equality and empowerment, and promoting sustainable growth and decent work for all,” Srini Nagarajan, Managing Director and Head of Asia at CDC said.
This investment would help Ecom Express create 8,000 new jobs in addition to an existing target of 15,000 roles – prioritising employing women for jobs at delivery centres, fulfilment centres and warehouses – in the country, it said in a press statement.
Additionally, Ecom Express will be utilising the equity infusion for strategic initiatives such as growth driven capital expenditure, working capital requirements, new business initiatives, expansion, and potential strategic acquisitions and partnerships.
“This fresh infusion of capital will enable us to further strengthen our network, infrastructure, operations, and technological prowess while assuring support to our next levels of growth. We are looking at a development-led impact which includes strengthening our sustainability initiatives, job creation and diversity. In CDC, we have a partner which helps us become socially responsible and contribute to the society at large through these initiatives,” T.A. Krishnan, Co-founder and Chief Executive Officer of Ecom Express said.
Ecom Express recently invested about ₹80.6 crore in Bangladesh's third-party e-commerce logistics firm, Paperfly.