Ecom Express-Delhivery acquisition deal raises concerns among minority shareholders

New Delhi, June 6 (IANS) Ecom Express, once a rising star in India’s e-commerce logistics space, has gone from planning an IPO to being sold off in what many are calling a ‘fire sale’ — leaving minority shareholders blindsided and independent board members furious.

The inside story began to unravel during the 24th Extraordinary General Meeting (EGM) of Ecom Express, held virtually, according to multiple reports.

At the meeting, Chairman and Independent Director, V. Anantharaman, reportedly announced that a deal had been finalised in April 2025 for Delhivery to acquire nearly the entire company.

Anantharaman expressed concern that the agreement was reached without informing the company’s board or its minority shareholders.

He later stepped down from his role as Chairman. Following his resignation, Ecom Express CEO Ajay Chitkara chaired the meeting.

The acquisition involves Delhivery buying a 99.44 per cent stake in Ecom Express for a cash consideration of up to Rs 1,400 crore.

However, reports say the actual purchase cost is closer to Rs 1,100 crore, since Ecom Express reportedly had Rs 300 crore in cash reserves that Delhivery plans to use for post-deal integration.

This values the company at approximately 0.5 times its annual revenue, which stands at over Rs 2,500 crore — a lower multiple than what is typically seen in the logistics industry.

Ecom Express had previously received regulatory approval from the SEBI to go public, making the acquisition deal an unexpected shift in direction.

The move reportedly led to resignations from around 150 mid-level and regional operations staff, ahead of the expected integration with Delhivery.

While the exits have been described as voluntary, reports suggest there may be restructuring and role redundancies in the near term.

Founded in 2012 and headquartered in Gurugram, Ecom Express has raised over $290 million in funding and has built a presence as a full-stack, tech-enabled logistics provider.

Delhivery or Ecom Express were yet to respond to reports.

–IANS

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