Ecom Express targets $170 million via rights issue

economictimes.indiatimes.com:

logistics company Ecom Express is looking to raise Rs 1,424 crore (about $170 million) through a rights issue that is likely to be led by its existing investors Warburg Pincus, British International Investment (BII), and Switzerland-based Partners Group.

The company’s shareholders have passed a resolution for the rights issue totalling 1.57 million compulsorily convertible preference shares at Rs 9,071 apiece – the same price at which Ecom Express did a rights issue in July last year, showed regulatory filings with the Registrar of Companies (RoC).

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The filings showed Warburg Pincus holds a 33.76% stake in Ecom Express, followed by Partners Group at 17.57% and British International Investment at 6.48%.

Ecom Express didn’t respond to ET’s queries.

The Gurugram-based company, which competes with the likes of Delhivery, and Xpressbees in addition to Flipkart’s Ekart Logistics and Amazon Transportation Services, reported a 20% increase in revenue in FY23 to Rs 2,548 crore, even as its losses widened fourfold. The company has yet to file its financials for FY24.

In 2022, Ecom Express deferred a planned public listing after the investment scenario for new-age startups turned sombre.

Much like its rivals Delhivery and Xpressbees, Ecom