It’s raining unicorns in the Indian startup ecosystem. New-age logistics provider Xpressbees has become the latest startup to join the billion-dollar club after bagging a whopping $300 million in its Series F funding round led by private equity funds Blackstone Growth, TPG Growth and ChrysCapital.
The latest round has valued Xpressbees at $1.2 billion, a person familiar with the matter told CNBC-TV18.
Existing investors, Investcorp and Norwest Venture Partners, also participated in the funding round. Avendus Capital acted as the exclusive financial advisor to Xpressbees on this transaction.
With this investment, the e-commerce
logistics startup’s total fundraise has exceeded $500 million. The Pune-headquartered firm had raised a $110 million Series E financing round from Investcorp, Norwest Venture Partners and Gaja Capital in 2020.
“We are excited to welcome our new partners Blackstone Growth, TPG Growth, and ChrysCapital in our growth journey. With their vast network and operational expertise, we believe that they will further fuel our efforts in pursuing newer opportunities and will help expand our footprint,” said Amitava Saha, Founder, and Chief Executive Officer, Xpressbees.
With the fresh capital, Xpressbees is looking to evolve into a full-service logistics organization, support the business in its next phase of growth, product development, and hiring talent.
According to a report by ResearchAndMarkets, the Indian e-commerce logistics market is expected to reach $11.48 billion by 2027 from $ 2.93 billion in 2019. It is estimated to grow at a CAGR of 18.8% from 2020 to 2027.
“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. Xpressbees has developed a differentiated, highly scalable, and asset-light operating model that is fully integrated through a customizable tech platform,” said Akshay Tanna, Partner at TPG Growth.
Xpressbees started as the logistics arm of baby products retailer FirstCry. It then commenced independent operations in September 2015. Today, the startup is present across 3000 cities, serving over 20,000 pin codes, and delivers over 1.5 million packages per day.
Xpressbees now has over 100 hubs across India, 10 lakh sqft. plus, warehouse capacity, and operates across 52 airports in the country. The brand claims to have clocked a near 100% growth in revenue on a year-to-year basis.