Logistics unicorn Xpressbees has completed an all-cash acquisition of New Delhi-based courier firm Trackon, marking its entry into the SME courier sector. This strategic move aims to leverage Xpressbees’ extensive network for nationwide expansion of Trackon’s operations.
Xpressbees Expanding Reach and Cross-Selling Opportunities
Amitava Saha, CEO of Xpressbees, highlighted that the acquisition would utilize their network to scale up Trackon’s presence across the country. While Trackon has predominantly served the northern and western regions, covering around 5,000 pin codes, Xpressbees operates across 15,000 pin codes. Saha expressed plans to not only expand Trackon but also explore cross-selling opportunities for their existing services through Trackon’s franchise network.
Leadership Continuity and Brand Identity
As part of the acquisition, Prabhat Kumar Anand, Trackon’s founder and CMD, will continue to lead the business for at least the next two years. The transition will see cofounders Pramod Kumar Singh, Dinesh Rautela, and Yoginder Kumar Dabas move on. Despite the changes, there will be no alteration to Trackon’s brand identity, ensuring continuity and familiarity for its customers.
Acquisition in Context of Potential Funding Injection
This acquisition coincides with Xpressbees’ pursuit of a potential $100 million cash injection from Canada-based Ontario Teachers’ Pension Plan Board. The funding is aimed at securing a stake in the company at a valuation of $1.4 billion, slightly higher than its valuation when it became a unicorn in January 2022.
Xpressbees Evolving Landscape and Financial Performance
Founded in 2015, Xpressbees offers diverse logistics services including B2B, B2C, and cross-border deliveries. The startup has achieved impressive growth, boasting over 100 hubs and 3 million sq. ft. of warehouse capacity, enabling deliveries to more than 20,000 pin codes across India. Major clients include Flipkart, Meesho, Snapdeal, and Mi.
Xpressbees’ financial performance reflects its rapid expansion. In FY22, net losses decreased by over 57% to INR 27.1 crore compared to INR 63.4 crore in FY21. Concurrently, operating revenue surged by 1.8 times to INR 1,904.4 crore in FY22 from INR 1,010.1 crore in FY21. The acquisition of Trackon aligns with Xpressbees’ growth strategy and its ongoing commitment to enhancing its logistics capabilities and market presence.
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