Elevation Capital Sells $40 Mn Worth Stake In Xpressbees

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XpressBees, a third-party logistics provider, has raised $40m from Malaysia’s sovereign wealth fund, Khazanah Nasional Berhad, in a secondary purchase from Elevation Capital, according to reports. This is the second such round within a year, with Elevation having sold $25m worth of stake in the company in August 2022. Xpressbees is valued at around $1.3-1.4bn, with Blackstone Growth, TPG Growth, ChrysCapital, Alibaba Group, Investcorp, Norwest Venture Partners and Gaja Capital among its investors. The Pune-based firm provides supply chain solutions, including express delivery and warehousing, and claims to operate across 52 airports in India. XpressBees demonstrated strong financial performance before its last equity fundraise, with revenues of more than Rs 1,900 crore. Additionally, the company has managed to control its overall losses, which shrank 57% to Rs 27 crore in FY22. The article also mentions that XpressBees has experienced growth in scale of over 88%.

SoftBank-backed Delhivery posted Rs 7,241 crore in revenue in FY22 from Rs 4,450 crore in the previous year whereas Shadofax’s revenue from operations grew over 2X to Rs 990 crore during FY22 as compared to Rs 464 crore in the previous year

XpressBees has come a long way since its inception as the logistics arm of FirstCry. Relaunching as a separate entity in 2015, the company has now become one of the leading third-party logistics providers in India. However, it faces competition from other players in the market such as Delhivery and Shadowfax. Delhivery, which recently went public, posted Rs 7,241 crore in revenue in FY22, while Shadowfax’s revenue from operations grew over 2X to Rs 990 crore during the same period.