Logistics solutions provider Ecom Express said it has received $20 million (about Rs 145.8 crore) investment from CDC Group, the UK Government”s development finance institution and impact investor in South Asia and Africa.
This is CDC’s second round of investment in Ecom Express after its initial investment in December 2019 when it had pumped in $36 million (over Rs 255 crore). In total, the company has raised $56 million in funding.
CDC’s latest commitment will support Ecom Express in advancing the company’s sustainable development and impact agenda of enhancing skills and boosting job creation in the Indian hinterlands, a statement said.
This investment supports India’s effort as it will enable Ecom Express to create 8,000 new jobs in addition to an initial target of 15,000 roles – prioritising employing women for jobs at delivery centres, fulfilment centres and warehouses across the nation, it added.
Additionally, Ecom Express will be utilising the equity infusion by CDC Group investments for strategic initiatives such as growth driven capital expenditure, working capital requirements, new business initiatives, expansions, and potential strategic acquisitions/partnerships, the statement said.
“Ecom Express is playing a vital role in enabling e-commerce growth and expanding product reach across India. CDC”s additional investment in the company reflects our support for the company’s pan-India expansion, and a commitment to channelling our patient capital toward a business that aligns with our development, impact, and sustainability goals,” CDC MD and head of Asia Srini Nagarajan said.
TA Krishnan, co-founder and CEO of Ecom Express, said the fresh infusion of capital will enable the company to further strengthen its network, infrastructure, operations, and technological prowess while assuring support to next levels of growth.
“We are looking at a development-led impact which includes strengthening our sustainability initiatives, job creation and diversity. In CDC, we have a partner which helps us become socially responsible and contribute to the society at large through these initiatives,” he said.
Ecom Express recently invested $11 million (about Rs 80.6 crore) in Bangladesh’s largest third-party e-commerce logistics (3PL) firm, Paperfly. Through this investment, Ecom Express entered Bangladesh marking its maiden venture outside India, after having covered the length and breadth of the country reaching over 1.2 billion people daily.
Headquartered in Gurugram, Ecom Express was incorporated in 2012 by TA Krishnan, Manju Dhawan, K Satyanarayana and late Sanjeev Saxena.