XpressBees, one of India’s leading e-commerce logistics companies, has secured $80 million in its Series G round of funding from existing investors such as Investcorp, Norwest Venture Partners, and ChrysCapital. The company also announced that it will buy back employee stock options (ESOPs) worth $5 million, rewarding its loyal and hardworking staff.
XpressBees becomes profitable amid pandemic
The Pune-based startup, which was spun off from online baby products retailer FirstCry in 2015, has become profitable in the fiscal year 2023-24, despite the challenges posed by the Covid-19 pandemic. The company claims to have achieved an annual revenue run rate of over $200 million, with a positive EBITDA margin of 2%.
XpressBees has leveraged its technology, network, and operational efficiency to deliver over 1.8 million packages per day across more than 20,000 pin codes in India. It serves over 1,000 clients, including e-commerce giants like Flipkart, Amazon, Myntra, and Shopee, as well as emerging vertical players like Meesho, Purplle, and FirstCry.
XpressBees plans to use the funds for growth and diversification
The fresh capital will be used to further strengthen the company’s market position, expand its service offerings, and invest in new technologies. XpressBees plans to diversify into new segments such as grocery, pharma, and B2B logistics, as well as explore international markets.
The company also intends to enhance its capabilities in areas such as warehousing, fulfilment, cross-border logistics, and reverse logistics. XpressBees aims to become a full-stack logistics solution provider for the e-commerce industry, offering end-to-end services from first-mile pickup to last-mile delivery.
XpressBees rewards its employees with ESOP buyback
In a rare move for a logistics startup, XpressBees has decided to buy back ESOPs worth $5 million from its current and former employees, who have been instrumental in the company’s growth and success. The buyback will be done at a 50% premium to the valuation of the Series G round, which is estimated to be around $600 million.
The company said that the ESOP buyback is a way of expressing its gratitude and appreciation to its employees, who have shown resilience and dedication during the pandemic. XpressBees has over 30,000 employees, out of which around 400 are eligible for the buyback. The company also plans to allocate more ESOPs to its existing and new employees in the future.
XpressBees joins the unicorn club of logistics startups
With the Series G round, XpressBees has joined the elite club of logistics startups that have achieved a valuation of over $1 billion. The list includes Delhivery, Rivigo, BlackBuck, and ElasticRun, which have all raised significant funding in the past year.
The logistics sector in India has witnessed a surge in demand and innovation, driven by the growth of e-commerce, digital payments, and online services. According to a report by RedSeer, the e-commerce logistics market in India is expected to grow at a compound annual growth rate (CAGR) of 36% from 2020 to 2024, reaching $12 billion by 2024.
The investors of XpressBees have expressed their confidence and excitement in the company’s vision and performance. They believe that XpressBees has the potential to become a dominant player in the e-commerce logistics space, both in India and abroad.