In a major development within India’s logistics sector, Delhivery has officially moved the Competition Commission of India (CCI) to seek approval for its planned acquisition of a controlling 99.4% stake in Ecom Express. The deal, valued at INR 1,407 crore, marks a significant shift in the competitive landscape, especially considering the acquisition price represents a steep 80% discount from Ecom Express’ last known valuation of INR 7,300 crore.
The application filed with the CCI acknowledges the presence of “horizontal overlaps” and a “vertical relationship” between Delhivery and Ecom Express in certain logistics segments. Both companies offer overlapping services in the business-to-consumer (B2C) logistics space, particularly in last-mile delivery, warehousing, and fulfillment solutions. Additionally, a vertical relationship exists due to their interlinked operations, as Delhivery provides services that could feed into or rely on Ecom Express’ network.
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Despite these overlaps, Delhivery is optimistic about obtaining regulatory approval. The acquisition is strategically positioned to bolster its capabilities in the e-commerce logistics sector, particularly during a period of consolidation and intense competition. Ecom Express, founded in 2012, has established a strong presence in tier-2 and tier-3 cities, complementing Delhivery’s urban and pan-India network.
The proposed deal underscores a broader trend of consolidation in India’s logistics and supply chain ecosystem. With e-commerce giants like Amazon, Flipkart, and emerging quick commerce platforms ramping up delivery expectations, logistics providers are under pressure to enhance efficiency, coverage, and technological capabilities. By acquiring Ecom Express, Delhivery aims to further streamline operations and potentially achieve economies of scale that could improve margins and customer service.
Earlier this month, Delhivery informed stock exchanges of its plan to invest INR 1,407 crore to acquire the near-total stake in Ecom Express. This dramatic markdown in valuation — down by 80% — is being seen as a sign of challenging market conditions, but also as a calculated strategic opportunity for Delhivery to grow its footprint at a competitive price.
While the CCI review process may take several weeks, analysts believe that the deal is likely to go through, albeit potentially with some conditional modifications to address anti-competitive concerns. The regulator is expected to closely examine the extent of market concentration and whether the acquisition could hinder fair competition or innovation in the logistics industry.
As India’s digital commerce market continues its rapid growth, efficient logistics will remain a critical enabler. Delhivery’s move to acquire Ecom Express is a bold bet on the future of e-commerce delivery, and all eyes are now on the CCI’s verdict in what could be a transformative merger for the sector.
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