ET was the first to report the proposed transaction on December 16. As per our sources, the fund will acquire around 35% stake in the company, making it an equal owner of the business along with Warburg Pincus that held 75% stake in the company so far.
“Following the acquisition, Partners Group will (on behalf of its clients) become an equal shareholder in Ecom to existing investor Warburg Pincus, the global private equity firm focused on growth investing. CDC Group, the UK’s development finance institution, and Ecom’s founders will hold the remainder of the equity in the Company,” the company release said.
Founded in 2012, Ecom provides logistics services in over 2,650 towns across more than 27,000 pin codes in India, covering 95% of India’s population. Its clients include India’s largest e-commerce players, with the company delivering almost a million shipments per day via 2,800 delivery centres.
“As the market expands, investing in and developing our operations and customer satisfaction will be key to maintaining our market-leading position. Partners Group’s entrepreneurial ownership style and experience working with high growth e-commerce businesses make the firm an ideal partner for us together with Warburg Pincus,” said TA Krishnan, Co-Founder and Chief Executive Officer, Ecom.
Following the investment, Partners Group will work closely with Ecom’s management team, led by co-founder and chief executive officer, TA Krishnan, and with existing investors, on several key strategic initiatives to support the company’s ongoing growth.
These will include continued investment in automation, data sciences and technology to further enhance service quality, efficiency and productivity across delivery processes. Another key area of focus will be expanding the Company’s product offerings in express logistics and fulfillment services.
Higher levels of disposable income, wide-spread urbanization and changing consumer behavior are accelerating the growth trajectory of e-commerce in India, a trend that has been amplified by the COVID-19 pandemic.
Since 2013, the company had raised seed funding from Olphans Capital, Rs 100 crore from Peepul Capital in 2014, Rs 850 crore from Warburg Pincus in 2015 and a follow-on round of Rs 193 crore from Warburg in 2017. CDC Group invested $30 million in 2019.
“Ecom is an outstanding company supported by strong transformative trends around digitization and the increase of e-commerce… We will work to further build Ecom’s distribution network, as well as bring new offerings to market to increase customer stickiness,” said Manas Tandon, Managing Director, Head Private Equity Asia, Partners Group.