Pune-based logistics company Xpressbees has acquired New Delhi-based courier firm Trackon in an all-cash transaction deal. After the deal, the company will be able to enter the SME courier space, it informed the Economic Times without revealing the deal size.
Incorporated in 2002, Trackon is a private unlisted company. It was initially operating in Delhi and Mumbai but gradually increased its operations across the country. In 2022, it planned to launch its services from India to almost 69 countries.
As reported by ET, Amitava Saha, chief executive officer of Xpressbees, said he will leverage his logistics firm’s existing network to scale up Trackon across the country. “We will expand Trackon using our network and also look at cross-selling our existing services through the franchise network of Trackon,” Saha was quoted as saying.
Delhi-based Trackon has spread its operations in the country, especially in the northern and western parts of India. The company is delivering its services to around 5,000 pin codes while Xpressbees has reached 15,000 pin codes so far.
As per the ET report, the founder and CMD of Trackon, Prabhat Kumar Anand, will be leading the business for the next two years while other co-founders have resigned from the company according to the agreed terms of the deal.
“Trackon is a Rs 350-crore revenue firm and with our scale and reach the combined strengths will help improve the bottom line of our firm as well,” Saha told ET.
We are planning to expand operations of Trackon to towns in eastern India, Saha added. Talking about the deal, he said that the acquisition is being funded through its existing cash balance.
On August 4, Bloomberg reported that the Ontario Teachers’ Pension Plan Board is in talks with the company over a $100 million fund, on which Saha declined to comment.
The company was valued at $1.1 billion in February 2022 after bagging $300 million investment from Blackstone, TPG, ChrysCapital, and other investors. It had also raised around $40 million from the Malaysian sovereign wealth fund, Khazanah Nasional Berhad, through a secondary sale. The company has $100 million in primary capital.
According to a report by Redseer Strategy Consultants, competition in the e-logistics space is intensifying. It expects the overall e-com logistics opportunity will be growing over a minimum CAGR of 20 per cent. It hopes that the total parcel will exceed over 10 billion by FY28.
