Ecom Express Unlisted Share
Ecom Express Ltd
INE004R01018
Listing Status: DRHP Filed
About Ecom Express Unlisted Share
Overview of Ecom Express Unlisted Share
Snapshot
Founded in 2012, Ecom Express Limited is an end-to-end technology enabled logistics solutions provider for the Indian retail and e-commerce industries. Headquartered in Gurugram, Haryana, Ecom Express serves a broad range of customers, including e-commerce marketplaces, D2C brands, and small and large online sellers.
Key Highlights:
- Extensive Reach: Covering 27,000+ pin codes across India, with delivery access to 97% of Indian households.
- Large-Scale Operations: Over 2 billion parcels delivered since inception.
- Infrastructure: 3,738 facilities including gateways and delivery centers, along with 3,420+ dedicated delivery centers.
- Workforce: A team of 15,616 employees and associates.
- Real Estate: 9.3 million sq. ft. of space for supply chain, storage, and fulfillment operations.
Services Offered
- Ecom Express Services (EXS): Comprehensive logistics offerings including first-mile pickup, network operation, last-mile delivery, reverse logistics, and returns management.
- Ecom Fulfillment Services (EFS): End-to-end supply chain, storage, and fulfillment solutions.
Operating Model:
Reverse Pickup Application: Streamlined pick-ups and returns for 100,000+ sellers, enhanced network reliability, and implemented advanced routing and tracking to reduce costs, delays, and pilferage risks, ensuring a secure and transparent supply chain.
Digital Initiatives
Ecom Express leverages cutting-edge technology and AI/ML driven proprietary tech-stack to ensure reliable customer experiences, creating a highly scalable and automated logistics infrastructure to meet the growing demands of India’s ecommerce ecosystem.
Below is a depiction of their usage of technology across the business:
Bulls.ai leverages advanced AI technology to tackle address-related challenges in e-commerce logistics across India. It enhances delivery accuracy and speed, particularly in smaller towns and cities. By optimizing address verification and routing, Bulls.ai reduces return rates and improves overall customer satisfaction, ensuring a seamless delivery experience.
Awards | Recognitions
- Logistics Champion – Awarded by the Institute of Supply Chain Management in Logistics Ranking 2024.
- Great Place to Work Certification – Received for the period March 2024 to March 2025 by Great Place to Work Institute, India.
- Best Tech for SCM & Logistics – Awarded by Idea at the India Digital Enabler Awards 2023.
- Top 25 Companies in Tech Startups – Ranked in the ‘Best Places to Work in India’ by AmbitionBox in 2022.
Management
Ajay Chitkara | Managing Director and Chief Executive Officer
- Education: Post Graduate Diploma in Business Management from the Institute of Management Technology (IMT), Ghaziabad.
- Experience: Over 22 years of experience, last serving as Director and CEO of Airtel Business.
Venkataramanan Anantharaman | Chairman and Independent Director
- Education: Holds a bachelor's degree in metallurgical engineering from Jadavpur University and a postgraduate diploma in management from XLRI, Jamshedpur, along with a Pearson SRF BTEC Level 7 Advanced Professional Diploma from the Financial Times.
- Experience: With over 30 years of experience in financial services, he has held senior roles including Vice President at Bank of America, Director at Deutsche Bank, Global Head at Standard Chartered Bank, Managing Director at Credit Suisse, and Senior Advisor at CDC India Advisors.
Insights of Ecom Express Unlisted Share
Financial Snapshot
All values are in INR Cr.
Particulars |
FY 24 |
FY 23 |
Y-O-Y Growth |
Revenue |
2653 |
2548 |
4% |
EBITDA |
103.5 | 3.2 |
3134% |
PAT |
-255.88 |
-428.13 |
40% |
PAT Margin |
-9.6% |
-17% |
42% |
Key Takeaways:
- The revenue has increased marginally y-o-y by 4%.
- The largest expenditure category comprises cost of services at ₹1,389.9 crore in FY24, showing a slight increase of 0.23% from ₹1,386.7 crore in the previous fiscal year.
- Damaged/lost shipments cost: Notable rise of 9.21%, reaching ₹92.4 crore in FY24, compared to ₹84.6 crore in the prior year.
- EBITDA has shown massive improvements.
- The PAT margins have shown improvement as the losses have dropped down significantly indicating that the company might become profit-making in the next few years.
Valuation
As of August 19, 2024
- Nominal Value: ₹9,071
- Post 1:10 Stock Split Price: ₹907.10
- Post 1:2 Bonus Issue Price: ₹604.73
- Present Price (market adjusted): ₹550
- Approximately at a 21% discount to CMP.
Peer Comparison
All values are in INR Cr for FY24.
Particulars |
Ecom Express |
Blue Dart Express Limited |
Revenue |
2652.89 |
5318.6 |
PAT |
-255.88 |
301.01 |
PAT Margin |
-9.6% |
5.47% |
Current Market Price (10/09/24) |
550 |
8131 |
MCAP |
7402 |
19441 |
P/E |
N/A |
64.5 |
P/S |
2.8 |
3.6 |
P/B |
28.9 |
14.1 |
Key Takeaways:
- Blue Dart has over 2x revenue and m-cap. It is profitable against its peer with a P/E ratio of 64.5.
- The P/S ratio indicates that Ecom Express might be undervalued but a significantly higher P/B ratio emphasizes on the lower profit margins than peers, as it is not converting sales into tangible value on its balance sheet effectively, despite strong revenue generation.
Industry Overview
India's Logistics Sector & B2C E-Commerce Market (FY 2024)
The Indian logistics sector is highly fragmented, dominated by small-scale fleet operators.
Core Transportation Modes:
- Road Transport: Key mode, split into B2B full-truck load (FTL), part-truck load (PTL), and B2C e-commerce logistics.
- B2C E-Commerce Logistics: A significant, more organized segment catering to growing online shopping demand, with focus on quick and slotted deliveries.
Key Challenges:
- Pre-GST Tax Regime: Limited smooth interstate movement, hindering growth.
- Poor Road Infrastructure: Restricts travel distances, leading to inefficiencies.
Market Size: Valued at ₹100-130 billion (US$ 1.2-1.6 billion) in FY 2024.
Growth Potential: Expected to grow at a CAGR of 24-26%, reaching ₹340-380 billion (US$ 4.2-4.6 billion) by FY 2029.
Revenue Sources: Majority from forward shipments; reverse shipments account for ~20% of value due to higher costs.
Below is a comparison of logistics market across USA, China and India:
Funding History
The latest funding round, held on July 5, 2023, was executed via Compulsorily Convertible Preference Shares (CCPS), with each preference share priced at ₹9,071, reflecting the company’s strategic valuation approach in securing capital.
- July 5, 2023: The company raised $14.7M in a Series C round from Warburg Pincus and British International Investment.
- October 3, 2022: A funding of $39M was secured in a Series C round, led by Warburg Pincus, British International Investment, and another investor.
- February 23, 2021: The company raised $20.2M in its Series C round, with British International Investment as the investor.
- December 16, 2020: The company raised an undisclosed amount in a Series C round, with Partners Group participating.
- October 25, 2019: A funding round of $36M was raised in a Series C round, led by British International Investment.
Subsidiaries
In FY23, the startup made a strategic decision to exit Paperfly, a partly-owned subsidiary in Bangladesh. This move reflects the company's proactive approach to optimizing its portfolio and maintaining financial discipline.
Despite the exit, the company reported losses of INR 248.5 Cr from its continuing operations in FY24. However, this decisive step highlights the company's focus on:
- Streamlining Operations: The exit from Paperfly is a clear effort to concentrate on core business areas and reduce financial strain.
- Enhancing Financial Discipline: By divesting non-core assets, the company is taking measures to improve overall financial health and focus on sustainable growth.
IPO Plans
The company filed its DRHP on August 19, 2024.
- Planned to raise Rs 2,600 crore via IPO.
- IPO consists of a fresh issuance of Rs 1,284.5 crore and an OFS of Rs 1,315.5 crore by promoters and investors.
- Promoters & Investors in OFS: Kotla Satyanarayana, Manju Dhawan, Kotla Sridevi, Kotla Rathnanjali, Eaglebay Investment (Warburg Pincus), PG Esmeralda Pte (Partners Group), and British International Investment.
- Pre-IPO Placement: Potential fund raise of up to Rs 256.9 crore before IPO.
Use of IPO Proceeds:
- New Processing and Fulfillment Centres: Rs 387.44 crore.
- IT and Tech Infrastructure: Rs 312.9 crore for computers, technology, and data science.
- Debt Repayment: Rs 87.92 crore for repaying debt (outstanding borrowings of Rs 165.65 crore as of June 2024).
- General Corporate Purposes and Inorganic Acquisitions.
Financial Charts of Ecom Express Unlisted Share
Balance Sheet of Ecom Express Unlisted Share
Profit and Loss of Ecom Express Unlisted Share
Ancillary of Ecom Express Unlisted Share
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of Ecom Express Unlisted Share
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How to buy Ecom Express Ltd?
Below are three ways through which you can purchase Ecom Express Ltd:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy Ecom Express Ltd, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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How to sell Ecom Express Ltd?
Below are three ways through which you can sell Ecom Express Ltd:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell Ecom Express Ltd, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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What is the price of Ecom Express Ltd?
We provide a two way quote on all the shares we deal in. Your buy price for Ecom Express Ltd is ₹666 and your sell price for Ecom Express Ltd is ₹400. The price is based on our estimates and market conditions.
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What is the lock-in period of Ecom Express Ltd?
The lock-in period for Ecom Express Ltd varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of Ecom Express Ltd
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of Ecom Express Ltd
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the Ecom Express Ltd price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of Ecom Express Ltd. The price is also determined from the most recent funding round for Ecom Express Ltd. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of Ecom Express Ltd?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of Ecom Express Ltd with us kindly click here.
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What are the financials of Ecom Express Ltd?
The financials of Ecom Express Ltd which includes the P/L of Ecom Express Ltd and the Balance Sheet of Ecom Express Ltd is in the financials section (Click on link).
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Where can I find the annual report of Ecom Express Ltd?
The annual report of Ecom Express Ltd is available in the annual report section (Click on link).
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Is buying Ecom Express Ltd legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on Ecom Express Ltd?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on Ecom Express Ltd and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on Ecom Express Ltd once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
How does Altius Investech source Ecom Express Ltd?
At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
How to trust Altius Investech before buying Ecom Express Ltd from its platform?
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With more than 25 years of experience, Altius Investech has carved a niche in the financial market by serving more than 8000 clients. The incredible journey is further highlighted by the vast number of transactions that Altius Investech has facilitated transactions that have already exceeded 300 crores.
For investors Altius Investech curates investment opportunities in companies at reasonable valuations which are on the verge of an IPO leading to massive value unlocking. Investments are backed by thorough research and sound investment thesis, with a time bound exit plan.
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