Posted by Mumbai: CDC Group, the UK Government’s development finance institution invested an additional $20 million in India’s Ecom Express. This will is CDC Group’s second funding in Ecom Express.
In December 2019, CDC Group invested $36 million in Ecom Express, which was its first investment in the India based logistics tech solutions provider. With this fresh investment, CDC Group has invested a total of $56 million in Ecom Express.
CDC Group said that it is committed to supporting Ecom Express in advancing the company’s sustainable development and impact agenda. That includes enhancing skills and boosting job creation in rural India. Every year India needs to create 8.1 million jobs to maintain its employment rate.
This investment supports India’s effort as it will enable Ecom Express to create 8,000 new jobs in addition to an initial target of 15,000 roles – prioritising employing women for jobs at delivery and fulfilment centres and warehouses across the nation.
Additionally, Ecom Express will be utilising the equity infusion by CDC Group investments for strategic initiatives. That includes growth driven capital expenditure, working capital requirements, new business initiatives, expansions, and potential strategic acquisitions/partnerships.
“CDC’s additional investment in Ecom Express reflects our support for the company’s pan-India expansion, and a commitment to channelling our patient capital toward a business that aligns with our development, impact, and sustainability goals,” said Srini Nagarajan, MD and Head – Asia, CDC.
“Moreover, we are delighted that this investment will further enhance efforts India is making to meet the UN Sustainable Development Goals of achieving gender equality and empowerment, and promoting sustainable growth and decent work for all,’’ added Nagarajan.
“We are extremely pleased to have a continued partnership with CDC. This fresh infusion of capital will enable us to further strengthen our network, infrastructure, operations, and technological prowess while assuring support to our next levels of growth,” said T. A. Krishnan, Co-Founder and CEO – Ecom Express.
“We are looking at a development led impact which includes strengthening our sustainability initiatives, job creation and diversity. In CDC, we have a partner which helps us become socially responsible and contribute to the society at large through these initiatives,” added Krishnan.
Ecom Express recently invested $11 million (about Rs 80.6 crore) in Bangladesh’s largest third-party e-commerce logistics (3PL) firm Paperfly. Through this investment, Ecom Express entered Bangladesh marking its maiden venture outside India.
CDC Group has investments in over 1,200 businesses in emerging economies and a total portfolio value of $6.2 billion. This year CDC aims to invest $1.75 billion in companies in Africa and Asia. CDC’s investment focus is on fighting climate change, empowering women and creating new jobs and opportunities for millions of people.