Third-party end-to-end logistics provider XpressBees announced that it has raised a $40 million investment from Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia. This investment will be made through a secondary purchase from its early investor Elevation Capital.
This is the second secondary round for XpressBees within a year. In August 2022, Elevation had sold $25 million worth stake in the company to Avendus Future Leaders Fund via secondary transaction.
Khazanah joins a high-quality set of investors in the company including Blackstone Growth, TPG Growth, ChrysCapital, Alibaba Group, Investcorp, Norwest Venture Partners and Gaja Capital.
XpressBees provides supply chain solutions including B2B/B2C express delivery service, cross-border logistics, and warehousing services to e-commerce players including Snapdeal, Myntra, Meesho, Netmeds, and Bigbasket.
The company today is present across 5,000 cities, serving over 20,000 pin codes, and delivers over 2 million packages per day. Xpressbees also claims that it has over 100 hubs across India, more than 3 million sq. ft. of warehouse capacity, and operates across 52 airports in the country.
Before the last equity fundraise, it demonstrated a strong financial performance with revenues of more than Rs 1,900 crore and inched closer towards break even in FY22. With growth in scale of over 88%, the Pune-based company has managed to control its overall losses which shrank 57% to Rs 27 crore in FY22.
Started its journey as the logistics arm of FirstCry, XpressBees 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 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.