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Ecom Express, a leading logistics solutions provider, plans to invest about ₹313 crore to build capabilities for using data insights collected in business operations.
The company will invest about ₹239 crore to enhance technological and data science capabilities including cloud infrastructure and pump in another ₹74 crore in computers and information technology equipment.
- Also read: Swift reforms, higher incentives to boost e-commerce exports to $350 billion by 2030: GTRI report
Ecom Express plans to raise fresh capital of about ₹1,284 crore and use ₹387 crore in setting up the new processing centres with automation and new fulfilment centres. It will repay debt of ₹88 crore.
Having handled over 200 crore shipments since its inception, the company has extensive address and geocode data. In FY’24, it picked up shipments from over 580,000 unique touchpoints across India.
The company intends to increase its network and enhance customer experience through improving delivery time and accuracy, it said in the draft red herring prospectus.
It has dedicated account managers who take care of the end-to-end shipment lifecycle and address all customer-related queries. Each complaint closure is closely monitored daily followed by a weekly report with the leadership team.
Ecom Express covers over 27,000 pin codes with a network of 317 sorting and processing centres and 3,421 delivery centres. The PIN codes, the company covers, collectively account for about 97 per cent of the country’s population.
The company’s hubs can process up to 11.38 crore parcels every month and operate dark stores at the delivery centres for customers seeking storage and doorstep delivery.
With a scalable asset-light business model, Ecom Express’ annual shipments handled have grown at a CAGR of 33 per cent between FY20 and FY24.
The domestic B2C e-commerce market is expected to grow at a CAGR of 21 per cent over the next five years from ₹5.10 lakh crore in gross merchandise value in FY24 to ₹13.50 lakh crore by FY’29, ask per RedSeer report.
Ecom Express had the second-largest B2C e-commerce shipments market share among its peers and handled over 27 per cent of all B2C shipments through third-party logistics providers in FY24, said the report.
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