E-commerce logistics provider Xpressbees has announced that it has raised $300 million in a funding round led by private equity funds Blackstone Growth, TPG Growth and ChrysCapital. The company is now a unicorn after the round valued it at $1.2 billion. Avendus Capital acted as the exclusive financial advisor to Xpressbees on this transaction.
The Series F fundraise included a primary capital infusion of $100 million and a secondary share sale worth $200 million. Early investors Elevation Capital and Alibaba booked a partial exit in the share sale; Chinese asset management company CDH Investments made a complete exit.
Existing investors, Investcorp and Norwest Venture Partners, also participated in the Series F round. With this round, the total amount of funds raised by Xpressbees exceeds $500 million. According to data from Tracxn, Xpressbees was valued at $403 million in its last funding round in November 2020 when it had raised $110 million.
“We are on track to achieve Rs 1,800 crore in revenue FY22 and are already EBITDA positive. This fundraise did not need a larger primary capital raise as we already have cash in the bank. Our revenue has grown 70 per cent over the previous fiscal,” said Amitava Saha, founder and CEO of Xpressbees.
The capital from the latest fundraise will be used to achieve Xpressbees’ vision to evolve into a full-service logistics organisation, support the business in its next phase of growth, product development, and hiring talent.
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“Xpressbees is playing an important role in India’s booming e-commerce sector, which is still at an early stage and has a long runway of development. We look forward to leveraging Blackstone’s deep expertise and global network in logistics and ecommerce to accelerate Xpressbees’s growth,” said Mukesh Mehta, Senior Managing Director in Blackstone Private Equity, which is based in India.
Founded in 2015 by serial entrepreneurs Amitava Saha and Supam Maheshwari, Xpressbees is currently present across 3,000 cities, serving over 20,000 pin codes. It claims to be delivering over 1.5 million packages per day. Besides e-commerce companies like Flipkart, Amazon, Meesho and Shopee, it also works with leading direct to customer startups. The company now has over 100 hubs across India with over 10 lakh square foot warehouse capacity and operates across 52 airports in the country.
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 is an exciting way to back the booming e-commerce sector in India, which continues to be a strong focus for ChrysCapital,” Kshitij Sheth, Director at ChrysCapital, said.
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