Delhivery, one of India’s top logistics players, has announced its acquisition of rival Ecom Express for ₹1,407 crore ($165 million). This comes at a steep discount of more than 80% from Ecom Express’s peak valuation of $850 million. The move reflects broader trends in the third-party logistics (3PL) market, where consolidation is becoming a strategic necessity.

Why the Deal Happened

Industry experts suggest that the deal is part of a larger pattern. With funding drying up in private markets and public market access becoming limited, acquisition has become a viable path for scaling operations. Delhivery’s CEO, Sahil Barua, previously expressed openness to consolidation if the opportunity and valuation were right.

Ecom Express’s Decline from Peak Valuation

Founded in 2012, Ecom Express benefited from the early e-commerce boom and secured $324 million in funding. Backed by investors like Warburg Pincus and British International Investment, the company once eyed an IPO worth ₹2,600 crore. But after failed listing attempts in 2022 and again in early 2025, the company laid off 500 employees and paused public market plans.

The final blow came when Delhivery accused Ecom Express of misrepresenting key metrics in its draft IPO papers.

Meesho’s In-House Platform Disrupts the 3PL Market

Ecom Express’s overreliance on Meesho, which contributed to nearly half its business, also proved damaging. Meesho launched its in-house logistics platform, Valmo, in early 2024. Within a year, Valmo was handling over 50% of Meesho’s orders—up from just 22%—causing a significant revenue loss for Ecom Express.

Leadership and Operational Challenges

The passing of co-founder T.A. Krishnan in October 2023 further weakened the company. Leadership turnover followed, despite the onboarding of Bharti Airtel veteran Ajay Chitkara in mid-2023. These internal issues compounded Ecom Express’s external struggles.

Slowing Growth in a Saturated Market

Financial results showed a clear decline in momentum. While FY23 saw a 22% revenue jump to ₹2,548 crore, FY25 brought only a 2% increase to ₹2,609 crore. Losses, though reduced to ₹256 crore in FY24, remained a concern.

India’s e-retail market also saw slower growth. A Bain-Flipkart report revealed a decline in growth from 20% to 10-12% in 2024, due to inflation and weak consumer spending. With consumption growth falling post-COVID, logistics firms like Ecom Express felt the pinch.

What’s Next for Ecom Express?

Despite the decline, Ecom Express’s co-founder K Satyanarayana remains hopeful. He believes Delhivery’s scale and integration will support Ecom Express’s turnaround.

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