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PE funds invest Rs 800 crore in Alibaba-backed Xpressbees, Retail News, ET Retail


Three private equity funds Investcorp, Norwest Venture Partners and Gaja Capital together invested about Rs.800 crore ($110 million) to acquire about 31% stake in Xpressbees, the E-commerce focused end-to-end supply chain solutions provider.

Founded in 2015 by serial entrepreneurs Amitava Saha (founder, Firstcry) and Supam Maheshwari, Xpressbees is amongst the largest players in E-commerce logistics in India. The company handles over 2 million shipments daily across the country on its network.

Other major investors in Xpressbees include Alibaba and SAIF Partners. In 2017, Alibaba had invested $35 Mn (Rs.224 Cr) in the Pune-based XpressBees. In early this year, Alibaba has invested an additional $10 million in the company.

Operated by BusyBees Logistics Solutions, Xpressbees has raised about $65 million till date from various investors. In 2016, Xpressbees had raised about $12.5 million from its existing investors – SAIF Partners, IDG Ventures India, NEA, Vertex Ventures, and Valiant Capital.

XpressBees, spun out of FirstCry in 2015, competes with major players such as Tiger Global-backed Delhivery, Warburg Pincus-backed Ecom Express and Goldman Sachs-backed BlackBuck.

Out of the $110 million, about $80 mn will be the primary funding into the company, for further expansion into new areas. With the funding, Xpressbees is in the process of foraying into Express Cargo, 3PL and Cross Border Logistics.

“We will use this investment for further automating our hubs and sort centres, increased investments in technology and to expand our delivery footprint to cover the entire country,” said Amitava Saha, CEO, Xpressbees.

Currently Xpressbees has presence across 2,000 towns and cities and works with more than 1,000 customers across E-commerce, pharma, FMCG, retail, manufacturing and electronics and consumer durables industry. Major clients of Xpressbees include Flipkart, Reliance Ajio, Myntra, Netmeds, Meesho, Lupin, Marico, Snapdeal and Purple.

“Investcorp strongly believes in the digital transformation of the Indian consumer and the enterprises,” said Varun Laul of Investcorp.

“We are delighted to partner with Xpressbees in their mission to build India’s premier E-commerce logistics business,” said Gopal Jain, Managing Partner, Gaja Capital.

“We continue to believe that new age technology led logistics players such as Xpressbees will continue to play a pivotal role both in the growth of the E-commerce sector in India and the transformation of the $ 200 billion Indian logistics industry,” Niren Shah, Managing Director and Head of NVP India.





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