Indian start-up Xpressbees raises $80 million from Ontario Teachers' fund
What's the story
Indian logistics company Xpressbees has secured $80 million in a recent funding round, led by Ontario Teachers' late-stage venture growth fund.
This investment comes as online shopping in India experiences a significant increase.
The Canadian pension fund has obtained a stake in the Pune-based start-up, valuing it at approximately $1.4 billion, which is consistent with the valuation from its Series F tranche.
With this latest fundraiser, Xpressbees' total funding has reached nearly $680 million.
Details
Xpressbees' clientele and operations in the country
Collaborating with over 1,000 clients throughout the nation, Xpressbees works with major companies such as Paytm, Meesho, Lenskart, Xiaomi, and NetMeds.
The firm delivers products throughout India, covering more than 2,000 cities and towns. It handles over 2.5 million orders daily.
For the fiscal year ending in March, the company generated around $300 million in revenue.
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Xpressbees' journey began in 2015
Initially part of FirstCry, an e-commerce platform for baby products, Xpressbees was established in 2012.
In 2015, it became a separate entity with Amitava Saha, co-founder and COO of FirstCry, transitioning to become CEO of Xpressbees.
Supam Maheshwari, another co-founder of FirstCry and its current CEO, also co-founded Xpressbees.
The entry of the Canadian pension fund suggests that Xpressbees is preparing for an IPO in one or two years.
Insights
India is a "key strategic" country for Ontario Teachers
Ontario Teachers' has invested more than $3 billion in India, considering it one of its "key strategic" countries.
Deepak Dara of Ontario Teachers' stated, "We are excited about the market opportunity for end-to-end logistics and supply chain solutions that can meet the needs of a diversified customer base."
Xpressbees faces competition from established rivals like Delhivery and Shadowfax, the latter of which is reportedly in advanced discussions to raise around $60 million in a funding round led by TPG NewQuest.