Xpressbees: Indian Startup XpressBees, a third-party end-to-end logistics provider, has announced that it raised a $40 million investment from Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia.
Khazanah’s investment will be made through a secondary purchase from XpressBees’ early investor Elevation Capital. This marks the second secondary round for XpressBees within a year, following Elevation’s $40 million worth stake sale to Avendus Future Leaders Fund in August 2022.
XpressBees facilitated the funding round at a 25-35% premium, valuing the company at around $1.3-1.4 billion. The company became a unicorn after a $300 million round in February last year.
Notably, XpressBees’ impressive list of investors includes Blackstone Growth, TPG Growth, ChrysCapital, Alibaba Group, Investcorp, Norwest Venture Partners, and Gaja Capital.
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Xpressbees: A brief on the business
XpressBees provides supply chain solutions such as B2B/B2C express delivery service, cross-border logistics, and warehousing services to e-commerce Players such as Snapdeal, Myntra, Meesho, Netmeds, and Bigbasket.
The company operates in over 5,000 cities, serves more than 20,000 pin codes, and delivers over 2 million packages per day.
XpressBees also boasts over 100 hubs across India, more than 3 million sq. ft. of warehouse capacity, and operates across 52 airports in the country.
Prior to the last equity fundraise, XpressBees demonstrated a strong financial performance, with revenues of more than Rs 1,900 crore and inching closer towards break-even in FY22.
With growth in scale of over 88%, the Pune-based company managed to control its overall losses, which shrank 57% to Rs 27 crore in FY22.
XpressBees started its journey as the logistics arm of FirstCry and relaunched as a separate entity in 2015.
It competes with Delhivery (now a public company) and Flipkart-backed Shadowfax. SoftBank-backed Delhivery posted Rs 7,241 crore in revenue in FY22 from Rs 4,450 crore in the previous year, while Shadowfax’s revenue from operations grew over 2X to Rs 990 crore during FY22 compared to Rs 464 crore in the previous year.
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