Ecom Express today said it has raised over Rs 100 crore from Peepul Capital, a development that will help the eCommerce logistics services firm expand its operations and reach.
With 3,000 employees, Ecom Express delivered nearly five million packages last year. This year, the company expects the volume to touch 20 million.
Ecom Express plans to expand its current footprint of 190 locations to over 800 locations in the next 5 years, achieving nation-wide coverage, the company said in a statement.
Last year, Ecom Express had raised angel round of funding led by Oliphans Capital.
"The infusion will go towards strengthening Ecom Express' current reach, expanding operations, investing in technology and automation, attracting key talent and to build a healthy flow in working capital," Ecom Express co-founder and CEO TA Krishnan.
The fund infusion will provide the impetus to achieve company's vision and drive growth plans in a more focussed manner, he added.
The India online retail market is growing at an explosive rate and reports suggest that it is projected to grow from $three billion in 2013 to $23 billion by 2018.
"This opens up huge demand for logistic services, offering tremendous opportunities for dedicated solutions providers like Ecom Express," it said.
Many logistics firms, which focus on the ecommerce segment have raised funds to accelerate growth. Earlier this week, Delhivery closed a $35-million round of funding, while another firm Holisol raised $1.5 million.
"The e-commerce industry is growing quickly and logistics is a critical component of the value chain. There is a tremendous opportunity for a dedicated logistics player who can understand and play an enabling role for the e-commerce industry," Peepul Capital Advisors Investment Director Srini Vudayagiri said.
Set up in January last year, Ecom Express has presence in over 100 towns and over 190 distribution centres across the country.
It also has 10 processing centres in Delhi-NCR, Pune, Bangalore, Hyderabad, Chennai, Kolkata and Ahmedabad.
The company plans to expand its distribution capabilities in the East and North East part of the country within the next few months in a phased manner.
"With these rounds of expansion, Ecom Express would offer reach across the country. Within the next three years, the company expects to cover nearly 500 towns and cities," Krishnan said.
