Partners Group, a private markets investment manager, has signed an agreement to acquire a significant stake in New Delhi-based logistics solutions provider Ecom Express Pvt Ltd for $250 million (about ₹1,825 crore).
The company, however, did not disclose the quantum of stake it will acquire. Following the deal, Partners Group will become an equal shareholder in Ecom along with existing investor Warburg Pincus, a global private equity firm. CDC Group, the UK’s development finance institution, and Ecom’s founders will hold the remaining equity, the company said in a statement.
“Higher levels of disposable income, wide-spread urbanisation and changing consumer behavior are accelerating the growth trajectory of e-commerce in India, a trend that has been amplified by the Covid-19 pandemic. Ecom has a strong distribution network and high levels of operational excellence and is therefore well-positioned to capitalise on this as we build out the business,” said Vageesh Gupta, Member of Management, Private Equity Asia at Partners Group.
Founded in 2012, Ecom provides logistics services across 2,650 towns and 27,000 pincodes in India. The company delivers almost a 1 million shipments per day through 2,800 delivery centres.
“As the market expands, investing in and developing our operations and customer satisfaction will be key to maintaining our market-leading position. Partners Group’s entrepreneurial ownership style and experience working with high growth e-commerce businesses make the firm an ideal partner for us together with Warburg Pincus,” Ecom Co-Founder and Chief Executive Officer TA Krishnan said.
Following the investment, Partners Group will work closely with Ecom’s management team on investment in automation, data sciences and technology to further enhance service quality, efficiency and productivity across delivery processes.
Since 1996, Partners Group has invested more than $135 billion in private equity, private real estate, private debt and private infrastructure on behalf of its clients globally and has over $96 billion in assets under management as of June 30, 2020. New York-headquartered Warburg Pincus, a global PE firm focused on growth investing, has more than $56 billion in private equity assets under management.