Indian Logistics Unicorn, Xpressbees has announced that it raised $40 million in a secondary purchase from Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia-an early investor in the company. This investment brings the total funding to $250 million.
Backed by investors including Blackstone Growth, TPG Growth, and Alibaba Group, the Pune-based startup, has plans to leverage the investment to become a dominant end-to-end logistics player and expand its presence across India.
“We believe Xpressbees is well-poised to build one of the largest tech-led businesses as they ride on the massive ecommerce market opportunity,” said Karan Sharma, MD & Co-Head, Digital and Technology Investment Banking, Avendus Capital, the exclusive financial advisor on the transaction.
“Khazanah’s disciplined long-term investment approach makes the Malaysian sovereign wealth fund a perfect partner for the company’s journey towards becoming a dominant player in India’s logistics industry.Amitava Saha, Founder and CEO of Xpressbees,
Xpressbees with this investment looks to strengthen its technological capabilities and expand its operations across India. At present it serves over 20,000 pin codes in 5,000 cities across India and has over 100 hubs and more than three million sq. ft. of warehouse capacity.
Operating across 52 airports in India, providing logistics services for e-commerce players such as Amazon, Flipkart, and Myntra, the logistics provider is well-positioned to capitalize on the massive e-commerce market opportunity in India, which is expected to reach $200 billion by 2026, according to a report by Morgan Stanley.
Xpressbees’ recent funding round demonstrates the growing investor interest in India’s logistics industry, which has seen significant growth in recent years due to the rapid expansion of e-commerce in the nation.