Partners Group will be acquiring a stake in Ecom Express, a provider of technology-enabled end-to-end logistics solutions to the Indian e-commerce industry, for over $250 million. Following the acquisition, Partners Group will become an equal shareholder in Ecom to existing investor Warburg Pincus. CDC Group and Ecom’s founders will hold the remainder of the equity in the company.
Partners Group to invest over USD 250 million to acquire equity stake in Ecom Express, a significant player in India’s e-commerce ecosystem
Partners Group, the global private markets investment manager, has agreed to acquire a significant equity stake in Ecom Express Private Limited (“Ecom” or “the Company”), one of the largest providers of technology-enabled end-to-end logistics solutions to the Indian e-commerce industry, on behalf of its clients.
Following the acquisition, Partners Group will (on behalf of its clients) become an equal shareholder in Ecom to existing investor Warburg Pincus, the global private equity firm focused on growth investing. CDC Group, the UK’s development finance institution, and Ecom’s founders will hold the remainder of the equity in the Company.
Founded in 2012, Ecom provides logistics services in over 2,650 towns across 27,000+ pin codes in India, covering 95%+ of India’s population. Its clients include India’s largest e-commerce players, with the Company delivering almost 1 million shipments per day via 2,800 delivery centres.
Following the investment, Partners Group will work closely with Ecom’s experienced management team, led by co-founder and Chief Executive Officer, TA Krishnan, and with existing investors, on several key strategic initiatives to support the Company’s ongoing growth. These will include continued investment in automation, data sciences and technology to further enhance service quality, efficiency and productivity across delivery processes. Another key area of focus will be expanding the Company’s product offerings in express logistics and fulfillment services.
TA Krishnan, Co-Founder and Chief Executive Officer, Ecom, says: “We have worked hard over the last eight years to build Ecom into India’s top provider of logistics solutions to the e-commerce industry. 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.”
Manas Tandon, Managing Director, Head Private Equity Asia, Partners Group, adds: “Ecom is an outstanding company supported by strong transformative trends around digitization and the increase of e-commerce. We look forward to working with Ecom’s management team and our partners at Warburg Pincus to further build Ecom’s distribution network, as well as bring new offerings to market to increase customer stickiness.”
Viraj Sawhney, Managing Director, Warburg Pincus, says: “We feel proud of the industry leadership position built by Ecom over the past few years driven by a scalable and proprietary technology platform, culture of high-quality execution, and focus on profitability. We welcome Partners Group and look forward to working with them and other investors in supporting the management team led by Krishnan to accelerate growth and drive further transformation in Indian logistics.”
Vageesh Gupta, Member of Management, Private Equity Asia, Partners Group, adds: “Higher levels of disposable income, wide-spread urbanization 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 capitalize on this as we build out the business.”
About Partners Group
Partners Group is a leading global private markets investment manager. Since 1996, the firm has invested over USD 135 billion in private equity, private real estate, private debt and private infrastructure on behalf of its clients globally. Partners Group is a committed, responsible investor and aims to create broad stakeholder impact through its active ownership and development of growing businesses, attractive real estate and essential infrastructure. With over USD 96 billion in assets under management as of 30 June 2020, Partners Group serves a broad range of institutional investors, sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,500 diverse professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For more information, please visit www.partnersgroup.com or follow us on LinkedIn or Twitter.
Partners Group’s private equity business has an established track record of investing in leading businesses with development potential to generate attractive returns for its clients. With entrepreneurial governance at the heart of its approach, Partners Group’s private equity business aims to build high-performing boards and works together with management teams on targeted value creation initiatives. These enable long-term, sustainable growth, to the benefit of all stakeholders. Partners Group’s private equity business has directly invested in over 240 businesses since inception and today has USD 45 billion in assets under management.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than USD 56 billion in private equity assets under management. The firm’s active portfolio of more than 190 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 19 private equity funds, which have invested more than USD 86 billion in over 910 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information please visit www.warburgpincus.com.