CDC Group, the UK government's development finance institution and impact investor in South Asia and Africa, has closed a $20 million (about Rs 146 crore) investment round in Ecom Express, a leading tech-enabled end-to-end logistics solutions provider to the Indian e-commerce industry.
This will be CDC's second round of investment in Ecom Express after its initial investment in December 2019.
Through this investment, Ecom Express entered Bangladesh marking its maiden venture outside India, after having covered the length and breadth of the country.
Ecom Express said that this investment will enable it to create 8,000 new jobs in addition to an initial target of 15,000 roles, prioritising employing women for jobs at delivery centres, fulfilment centres and warehouses across the nation.
T. A. Krishnan, Co-Founder and Chief Executive Officer of Ecom Express, said, "We are extremely pleased to have a continued partnership with CDC. This fresh infusion of capital will enable us to further strengthen our network, infrastructure, operations, and technological prowess while assuring support to our next levels of growth."
Ecom Express will be utilising the equity infusion by CDC Group investments for strategic initiatives such as growth driven capital expenditure, working capital requirements, new business initiatives, expansions, and potential strategic acquisitions/partnerships.
Srini Nagarajan, Managing Director and Head of Asia at CDC, stated, "Ecom Express is playing a vital role in enabling e-commerce growth and expanding product reach across India. CDC's additional investment in the company reflects our support for the company's pan-India expansion. Moreover, we are delighted that this investment will further enhance efforts India is making to meet the UN Sustainable Development Goals of achieving gender equality and empowerment and promoting sustainable growth and decent work for all."
Ecom Express recently invested $11 million in Bangladesh's largest third-party e-commerce logistics (3PL) firm, Paperfly.