CDC doubles down on India's Ecom Express
UK development finance institution CDC Group has invested $20 million in Indian e-commerce player Ecom Express. It follows a $36 million investment from CDC last year.
Ecom received at least $250 million from Partners Group in December, facilitating a partial exit for controlling shareholder Warburg Pincus. That deal reportedly delivered Partners Group and Warburg Pincus equal minority positions of around 35%. CDC and Ecom's founders hold the remaining equity.
Ecom is India's largest e-commerce and TV shopping logistics provider, covering more than 95% of the national population with operations in more than 2,600 towns. The company specializes in door-to-door delivery, with additional capabilities spanning service fulfillment, reverse logistics, and cash-on-delivery management services.
CDC, which brands itself as an impact investor, stressed that the latest cash injection would help the company create 8,000 new jobs while pursuing new partnerships and expansionary acquisitions. Earlier this year, Ecom entered Bangladesh with the acquisition of a majority stake in e-commerce logistics provider Paperfly for $11 million.
"CDC's additional investment in the company reflects our support for the company's pan-India expansion, and a commitment to channeling our patient capital toward a business that aligns with our development, impact, and sustainability goals," Srini Nagarajan, head of Asia at CDC, said in a statement.
"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."
It comes as CDC ramps up its focus on emerging markets, including South Asia. The development finance institution said in 2019 that it expected to invest $1.7 billion over the following three years in South Asia, including Myanmar. India is its most active jurisdiction.
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