Xpressbees has raised 300 million in the funding rounds, they are planning to used it for financial technology, advancement for their logistics start-up company.
Pune based Xpressbees, a new age logistics startup service provider raised $300 a funding round led by private equity funds from known logistics firms Blackstone, Chryscapital and TPG. Xpressbees founded in September, 2015 by Amitava Saha and Supam Maheshwari which is an e-commerce logistics company.
The company overall raised funds approximately $ 500 million, and it is said the capital raised will be used for product development, talent acquisition and for the next phase of growth. Current investors are being part of capital raising which includes Investcorp and Norwest Venture Partners. CEO of Xpressbees Amitava Saha said, â€œWe are excited to welcome our new partnership with Blackstone Growth, TPG Growth, and ChrysCapital in our growth journey. Planning to vast it with their vast network and operational expertise, we believe that they will further fuel our efforts in pursuing new opportunities and will help expand our footprint.
Xpressbees, a new age logistics startup service provider raised $300 a funding.
Saha added, this company aims to become a full-fledged logistics service provider by building on to more muscle to B2B such as cross-border verticals and warehousing. We are planning to used the capital for financing technology which will become an advancement tool and increase automation and to grow geographical presence. We do look forward for inorganic growth opportunities.
As it was announced the Xpressbees overall raised $500 million. The private equity funds of investcorp, Norwest Venture Partners and Gaia Capital has collectively raised about Rs. 800 crore which acquired about 31% stake in Xpressbees and in 2017 $35 million was invested by Alibaba firm.
The company has shown profit, CEO said
The Xpressbees business is profitable and has showed growth at the 70% (CAGR) compounded annual growth rate or in the last 12 months. In present they are at Rs. 1,800 crore in revenues and expect it to grow 50% year by next two to three years. Expressbees offers logistics solutions to ecommerce players. They are currently earning almost 90% of the revenues from ecommerce instead the remaining 10% comes from our B2B, warehousing and overseas business.
Xpressbees business is profitable and has showed growth at the 70% (CAGR).
The logistics firm competing with company such as Tiger Global-backed Delhivery, Warburg Pincus-backed Ecom Express, InfoEdge-backed Shiprocket, Guild Capital-backed Pickkr and Goldman Sachs-backed BlackBuck who come under well-funded logistics service provider.
Xpressbees one of the Indian largest logistics platforms plays an important role in India as booming e-commerce sector, which is at a newly stage towards long runaway development. TPG Growth, Partner Akshay Tanna said, As the Indian e-commerce market continues to grow, the need for end-to-end supply chain solutions that can meet the needs of diversified customers across industries has never been more pronounced.
â€œXpressbees has expand in transformed, highly scalable, and asset-light operating model that is fully integrated through a customizable tech platform. We look forward to leveraging our deep capabilities in India to support Amitava and his team as they grow the business and build on their leadership position,â€ he added.
Xpressbees at a present at 3,000 cities which is serving over 20,000 pin codes and deliveries each day over 1.5 million packages. It has made its 100 hubs, 10 lakhs plus warehouse capacity and 52 airports in the country.