MANAMA: Investcorp has partnered a private equity consortium to invest a total of $110 million in Xpressbees, an end-to-end e-commerce logistics platform in India.
While the Bahrain-based alternative investment manager did not disclose the amount invested by it, Indian media has reported Xpressbees’ ‘Series-E’ financing round of $110m was led by Investcorp, Norwest Venture Partners and Gaja Capital.
Citing data from research firm Tracxn, a Techcrunch.com report said the five-year-old start-up has raised $175.8m to date and the new funding round values Xpressbees at more than $350m.
Founded in 2015 by Amitava Saha and Supam Maheshwari, Xpressbees offers services including first and last-mile delivery, reverse logistics, real-time tracking, and multiple payment collection and processing options.
The firm is transforming into a fully-fledged supply chain business with express cargo, third-party, and cross-border logistics.
Xpressbees chief executive Amitava Saha said the company plans to use the funding for further automating hubs and sorting centres, increase investment in technology and to expand the delivery footprint to cover the entire country.
Commenting on the investment, Investcorp said it is looking towards fast-growing consumer brands that have been “supercharged through digitisation and technology to serve the needs of customers”.
In India, the firm invests in mid-market companies across consumption-linked sectors.
Other than Xpressbees, Investcorp has invested in InCred, ASG, Zolo, Citykart, Intergrow Brands, Bewakoof.com, NephroPlus and FreshToHome.
The focus is on targeting first-generation entrepreneurs scaling up businesses with asset-light models and proven unit economics, it said.
“We are excited to partner with Amitava and the Xpressbees management team in their journey to build a technology-first market defining business,” said Investcorp India’s private equity leadership member Varun Laul.
According to him, Xpressbees is at the “strategic sweet spot” of the consumer shift to digital and e-commerce, and the significant growth potential of the $200 billion plus logistics industry in India.
Today, Xpressbees has a presence across 2,000+ towns and cities in India and has strong traction with more than 1,000 customers across several industries, including e-commerce, pharmaceuticals, fast-moving consumer goods, retail, manufacturing, electronics, and consumer durables.
The company handles over 2m shipments daily across the country.
Investcorp today has a presence in 12 countries across the US, Europe, GCC and Asia, including India, China, and Singapore. As of end-June 2020, the group had $32.2bn in total AUM, including assets managed by third-party managers, and employed approximately 450 people from 44 nationalities globally across its offices.
avinash@gdn.com.bh
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