Delhivery to acquire Ecom Express for ₹1,407 crore
9th April 2025, The Indian logistics market is about to witness a major consolidation, with Delhivery having announced its acquisition of rival e-commerce company Ecom Express. The acquisition is to happen for ₹1,407 crore. It would include both cash as well as stock components. It is to take place amid recent layoffs and suspension of IPO expansion, when Delhivery itself is navigating through turbulent waters.
As per sources, this acquisition would aim at expanding Delhivery’s ultimate delivery capabilities and also improving operational efficiency across the logistics chain. Ecom Express is attributed for its reach and widespread network in Tier 2 and Tier 3 cities, making deliveries possible to every corner of the country. Meanwhile, Delhivery has a strong hold in urban areas, thus making this merger a strategic benefit.
In an official press release, Sahil Barua, CEO at Delhivery, said that this move would strengthen the company's ability to serve customers across the country with unmatched speed and reliability. Hence, this integration with Ecom Express will allow Delhivery to easily streamline routes, reduce redundancies, and improve profitability.
However, as stated earlier, this announcement came amid an ongoing internal restructuring at Delhivery, as the company recently laid off about 600 employees because there was a need to cut costs and refocus on major business functions.
According to Coherent Market Insights, the logistics market is evaluated at USD 13.43 billion in 2025. And it is anticipated to reach USD 24.09 billion by 2032. The market is expected to grow with an increasing Compound Annual Growth Rate (CAGR) of 8.7% from 2025 to 2032. The growth in the e-commerce industry, increase in online shopping, rise in the demand for a timely and safe delivery of goods, automation of certain procedures, inntroduction of Artificial Intelligence, increase in parcels, growth in the packaging, food and beverages industry are all significant factors contributing effectively to the market’s growth.
“The global logistics market is experiencing robust growth driven by increasing trade volumes and evolving customer expectations of fast deliveries. Rising e-commerce penetration is a major driver as online purchases require a strong logistics network for order fulfillment and last-mile deliveries. As consumption patterns change, logistics firms need to offer value-added services beyond traditional transportation and warehousing,” says a senior analyst at Coherent Market Insights.
Source:
News outlet : The Economic Times
