BusyBees Logistics Solutions Pvt. Ltd, which runs logistics services startup Xpressbees, said on Monday that it has acquired logistics company Trackon Couriers Pvt Ltd.
The financial details of the transactions were not disclosed.
The Pune-based startup targets to enter the small and medium-sized enterprises sector by using Trackon’s franchisee network.
“Our partnership with Xpressbees enables us to scale up our business and reach. We will be able to expand our service lines to our existing clients,” said P K Anand, chief managing director, Trackon.
Trackon was founded in 2002 and provides express delivery services throughout India and across the globe. Currently, Trackon claims to handle 2 lakh consignments whilst serving over 5000 pin codes.
Meanwhile, Xpressbees was founded in 2015 by Amitava Saha and Supam Maheshwari. It is an end-to-end logistics company that caters to sectors such as e-commerce, pharmaceuticals, fast-moving consumer goods, retail, manufacturing, electronics and consumer durables. It claims its network covers over 21,000 pin codes and delivers over 2 million packages daily.
“The acquisition will aid our respective businesses, change consumer experience for the better, and enable us to build synergies across the two organizations,” said Saha, founder and chief executive officer, Xpressbees.
In April, the startup raised $40 million from Malaysian sovereign wealth fund Khazanah Nasional Berhad through a secondary purchase. VCCircle reported that Khazanah bought around a 2.9% stake in Xpressbees from Elevation Capital and that the transaction was struck at a valuation of $1.4 billion.
Xpressbees also counts Blackstone, TPG Growth, ChrysCapital, Alibaba Group, Investcorp, Norwest Venture Partners and Gaja Capital as its investors.
Last week, Bloomberg reported that Ontario Teachers’ Pension Plan Board was eyeing a $100-million investment in the logistics startup.
Xpressbees narrowed its consolidated net loss to Rs 27.1 crore in FY22 as compared to a loss of Rs 63.4 crore in FY21. It reported an operational profit for the first time at Rs 44.5 crore. The company reported an 88.5% jump in its consolidated revenue from operations in FY22, at Rs 1,904.4 crore against nearly Rs 1,010.2 crore in FY21.
Springforth Capital Advisors acted as the sole investment banking advisor for the latest transaction.
