Xpressbees, a logistics powerhouse, has acquired New Delhi’s Trackon, marking its entry into the SME courier space. With a nationwide expansion plan and synergistic benefits, Xpressbees aims to leverage its network for growth. The acquisition aligns with their success story, backed by major investments and a diversified service portfolio, promising enhanced customer experiences.
Xpressbees, a logistics company has recently acquired Trackon, a courier firm based in New Delhi. This acquisition aims to allow Xpressbees to enter the SME courier market by utilizing its existing network and expanding Trackons’ presence nationwide. Trackon has primarily focused on serving around 5,000 pin codes in the western parts of the country while Xpressbees operates in 15,000 pin codes, across India.
Amitava Saha, the CEO of Xpressbees expressed his plans to grow Trackon using their network and explore opportunities for cross-selling their existing services through Trackons franchise network. Saha believes that this partnership will benefit both companies by enhancing consumer experiences and creating synergies between their organizations.
Under this deal, Prabhat Kumar Anand, the founder and CMD of Trackon will continue to lead the business for two years. However, co-founders Pramod Kumar Singh, Dinesh Rautela, and Yoginder Kumar Dabas will no longer be part of the company following the acquisition.
Anand stated that partnering, with Xpressbees will significantly boost their business reach. By combining their expertise with Xpressbees’ capabilities they aim to expand service offerings to existing clients while maintaining high-quality services.
The logistics giant is considering an injection of $100 million, in cash from the Ontario Teachers’ Pension Plan Board based in Canada. They are looking to acquire a stake in the startup at a valuation of $1.4 billion.
The current valuation is slightly higher than when Xpressbees became part of the unicorn club in January 2022 after raising $300 million in its Series F funding round led by equity firms Blackstone Growth, TPG Growth, and Chrys Capital. The company secured the funds at a valuation of $1.2 billion.
In April the Pune-based logistics startup received $40 million from wealth fund Khazanah Nasional Berhad through a secondary sale.
Xpressbees was established as an entity from FirstCry, a kids’ e-commerce company preparing for an IPO back in 2015. Offering B2B, B2C, and cross-border logistics services Xpressbees operates over 100 hubs with warehouse capacity exceeding 3 million feet. Their services cover than 20,000 pin codes across India.
Xpressbees generates revenue by providing logistics, warehousing and delivery services to its clients. They handle both B2B and B2C deliveries. Offer border logistics as well, as third-party logistics (3PL) services. The startup has clients, like Flipkart, Meesho, Snapdeal, and Mi among others.
In the year 2022, the net loss of the company decreased by over 57% going from INR 63.4 Cr in FY21 to INR 27.1 Cr. At the time their operating revenue experienced a surge of 1.8X reaching INR 1,904.4 Cr in FY22 from INR 1,010.1 Cr, in FY21.
