Xpressbees receives investment worth Rs 800 crores from three private equity funds

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

From this funding, $80 million will be the primary funding into the company for further expansion. Depending on the funding, Xpressbees is in the process of foraying into Express Cargo, 3PL and Cross Border Logistics.

Xpressbees was founded in the year 2015 by serial entrepreneurs Amitava Saha (founder, Firstcry) and Supam Maheshwari. The company handles over 2 million shipments daily across the country on its network.

Other investors of Xpressbees are Alibaba and SAIF Partners. Earlier in 2017 Alibaba invested $35 million (Rs 224 crore) in the company and this year also it has invested an additional $10 million in Xpressbees.

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.

"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 ecommerce, 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 ecommerce 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, MD and Head of NVP India.