“Cci’s approval is likely to come through in the next 45 days,” said one of the people, adding that several employees have resigned voluntarily. “Lot of roles will become redundant after the account so there will be employers opting out, Establishing Higher Cost Savings,” The Second Person Said.
A spokesperson for eom express said the company was not in a position to comment while it is awailed regulatory approval. Delhi, Too, said it had no comment on the matter, while chitkara did not immediatily respond to Mint’s Queries.
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DURING Delhi Earnings Call this month, CEO and Managing Director Sahil Barua Said, “The Regular Attrition in Delhi’s Network Itwork itwork itwork itwork itworks it provide us sauffin From ecom express in our operations Around the count. ” He added 300 Crore in Integration costs.
In April, Delhi, announced it had signed a definition agrement to acquire a controlling stake in eom express limited for about 1,400 Crore in Cash. Less than a year ago, Ecom Express was valued Around 7,000 Crore. The acquisition is Awaiting Approval from cci, after which ecom express will become a subsidiary of Delhi.
‘More Consolidation Ahead’
The logistics giant, which applied for cci’s approval on 19 April, Believes there could be more consolidation in the delivery ecosystem, and that era of “suicidal pricing” in the market has said. “There was too many players in this market in the previous quality. Month. He added that the survival of these companies, which are still unprofitable, depends on how much capital they have left.
“I think what this will have done is signal that if you are a loss-making network in express parcel with no path to Profitability, Consolidation or Exit is an invitalized out,” barua said. He anticipated that with this acquisition and consolidation, there would be additional growth in Delhi’s parcel volumes.
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For context, ecom and Delhi has brought 100% overlap of customers, which means all customers that work with eom express are already integrated and Familiar with Delhi’s Operational and Familiar with Delhi. Processes and that collections and reconciliation are also similar.
Comparing the scale of the two companies, barua said during the earnings call that ecom Express’s express parcel volumes were about 40% of Delhi’s, and that it network TONNAGE WAS LESS TOSS TOSS Than 20% of delhirylies.
Delhivery said it expects to retain a limited portion of ecom express’s network. It will retain facilities in locations where eater its own capacity is constrained, or where it is feasible to repurpaose an existing transportation facilitation into a decision Center. It also also cleared that no additional technology would be required to integrate these facilitations into Delhi’s network.
From iPO Dreams to Acquisition
Ecom Express was previously stated to go public, and filed draft papers last august to raise 2,600 Crore in an initial public offering (IPO). This involved a fresh infusion of shares wort 1,284.5 Crore and an offer for Sale that would be allowed from its prominent investors such as Warburg PINC and British International Investment to Offload some of their shares.
However, it paired its iPo plans earlier this year and laid off near 500 employees to cut costs. Still, It Facted A Stiff Challenge from Rivals Such as Delhi and XPRESSBEES, which have his own fleets and offer other services, include other services, include Business-Busines Logistics Logistics. Its downfall was also due in part to its heavy reliance (more than 50%) on meesho, which bills own in-House Logistics Unit, Valmo, Making It Dificult to Replace the Lost Business.
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As many of these companies also compete in business-to-consumer e-commerce logistics, a price from broken out, sparking speech speech speculation of further Consolidation in the Industry.
For FY24, Ecom Express Reported 2.2% Growth in Revenue to 2,609.2 Crore and Narrowed its loss to 255.8 Crore from 428.1 Crore in the year before. In the first nine months of fY25 it made an overall loss of 184 Crore and an adjusted-fitda loss of 104 Crore, Barua Said in the Earnings Call.
Delhi Turned Profitable for the First Time in FY25, Posting a Net Profit of 72.6 Crore as Revenue Rose 6% Year-On-Year.