Ecom-Delhivery deal: A lifeline for one, a power move for the other

In a move that signals both consolidation and survival in India’s third-party logistics (3PL) space, Delhivery last week announced its intent to acquire rival Ecom Express for ₹1,407 crore. The deal, outlined in a stock exchange filing, has sent ripples across the logistics ecosystem, coming at a time when the e-commerce sector is witnessing a slowdown in growth and thinning margins.

 

The acquisition is being widely viewed as a distress sale for Ecom Express, which had filed its draft red herring prospectus (DRHP) in August last year, aiming for a public listing at a valuation of ₹7,300 crore. Fast forward to now, the company is being acquired for less than half that amount—underlining the growing stress in the 3PL B2C express logistics segment.

 

“This is a distress sale, but Delhivery is now better placed to capture remote towns. For others, consolidation is inevitable,” says Satish Meena, advisor at Datum Intelligence and co-founder of Sutradhar.

The fall of a former front-runner

Once a formidable player in e-commerce logistics, Ecom Express has seen its fortunes dwindle in FY24. Shipment volumes rose just 10%, revenue growth stagnated at 2% (₹2,609 crore), and net losses widened by 40% to ₹255 crore. A key vulnerability was its over-dependence on a single client—Meesho—which reportedly contributed nearly half of its revenues. As Meesho transitioned to its in-house logistics arm Valmo, the impact on Ecom was swift and severe.

“Over-reliance on a single client is always risky. When the dynamics shift, there’s little room to recover,” Meena points out.

A strategic win for Delhivery

In contrast, Delhivery has reported relatively stable financials. The company posted revenues of ₹8,142 crore in FY24 and narrowed its losses to ₹249 crore. More notably, it turned profitable in Q1 FY25.

By acquiring Ecom, Delhivery gains access to deeper infrastructure and enhanced reach into Tier-3 and Tier-4 towns—areas where Ecom had a solid footprint and where platforms like Meesho have a growing presence. The move is expected to bolster Delhivery’s scale and operational efficiency at a time when margins across the sector are under pressure.

Analysts say the acquisition reflects broader headwinds in the 3PL space. “There isn’t room for too many large players in the 3PL ecosystem,” Meena explains. “E-commerce growth is slowing, and volumes aren’t growing as projected. Consolidation is bound to accelerate.”

Indeed, e-commerce shipment volumes, once expected to grow 30–40% annually, have slowed to a modest 10–15%. The rise of quick commerce (q-commerce) has further disrupted the landscape by pulling small-ticket and grocery orders away from traditional e-commerce platforms—shrinking the volume pool for 3PLs.

According to a report by Emkay Global, irrational pricing by well-capitalised players has long plagued the sector’s profitability. But distressed valuations like Ecom’s may now force a course correction, potentially firming up the industry's profit pool.

What lies ahead

The deal between Delhivery and Ecom Express is more than a simple acquisition—it signals the beginning of a shakeout in India’s 3PL market. With capital becoming harder to come by and public market sentiment tepid, only diversified and capital-efficient players are likely to survive.

As Delhivery strengthens its position, the pressure is now on other players such as Blue Dart and DTDC.

In a maturing market, survival will depend not just on scale, but on strategy.