Alibaba Bets On Indian Logistics Companies

16 Jun

Alibaba delivery, Alibaba Asia

The Chinese E-Commerce company bets on India based logistics delivery service providers for helping it deliver items to its customers in India

Alibaba Group Holding Limited, which has previously invested in the Indian online retailers Snapdeal as well as Paytm, is now betting on Indian logistics companies. As per reports by Economic Times, it’s looking to invest in or purchase Xpressbess Logistics as well as Delhivery in the upcoming four to six months.

The online retailer has also planned to sell off the marketplace business of Paytm and inject with more capital investment. The Hangzhou based organization and its financial affiliate Ant financial jointly own around a 40% share in the organization. In recent times, Ecom Express and GoJavas have also shown interest in the organization’s entrance in the country to clinch a tie-up.

Senior executives from XpressBees and Delhivery have interacted with the group which the web retailer has established for entering India. The team is led by the Alibaba Company’s Bharati Balakrishnan and Global Managing Director K Guru Gowrappan.  In 2011, Gurgaon-based organization Delhivery was founded by Suraj Saharan, Kapil Bharati, Bhavesh Manglani, Sahil Barua and Mohit Tando.

The organization was valued at $4.43 million in its $85 million Series D financing round. It is funded by a number of investors like Times Internet, Nexus Venture Partners and Tiger Global management. On the other hand, a number of current investors invested $12.38 million in Pune-based E-commerce logistics service provider. These include Valiant Capital, Vertex Ventures, NEA, IDG Ventures India and SAIF Partners.

FirstCry had begun to run its logistics business 3 years ago when it took the decision to begin express deliveries of its items, and then entered into the market for third party logistics  at the start of the last year. The business has been established by its founders of FirstCry Amitava Saha and Supam Maheshwari. The organization was sold off as BusyBees in Sept last year.

Busybees Logistics Solutions-owned Xpressbees  has claimed that it has scaled more than 1 million deliveries on a daily basis on the back of only $5 million in financing. It makes deliveries to 200 cities, with ‘next day’ and ‘same-day’ in almost 100 cities, and covers more than 3000 pin codes.

Xpressbess will use the money to improve its tech and extend its operations. The organization looks to compete with other online retailing-focused logistics organizations such as Ecom Express, which is backed by Warburg Pincus and Delhivery. Many of the topmost E-commerce organizations including Amazon, Myntra and Flipkart are supported by logistics service providers.

Indian online shopping platform operator FlipKart delivers through Ekart, while Snapdeal bought a share in GoJavas to help it deliver items. Besides, online furniture retailer, FabFurnish introduced its logistics facility Fabone. Previously in June 2016, Xpressbees received around $8 million from Singaporean state-owned investment organization Temasek and SAIF Partners.

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Posted by on June 16, 2016 in Technology


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