Blackstone, TPG, ChrysCapital co-lead $300m investment in India’s Xpressbees

Feb 10, 2022 | News

Pune-based logistics startup Xpressbees Wednesday announced that it has entered the unicorn club after raising $300m in a fresh funding round at a valuation of $1.2bn.

Unicorn is a moniker used for privately held companies valued at $1bn and above.

The Series F round was led by private equity funds Blackstone Growth, TPG Growth and ChrysCapital. Existing investors, Investcorp, and Norwest Venture Partners also participated in the latest round, the startup said in a statement.

The fundraise comprises a primary capital infusion of $100m and a secondary share sale worth $200 million. While Beijing-headquartered CDH Investments has fully exited its investment in the company, Elevation Capital and Chinese e-commerce giant Alibaba have made partial exits.

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With this round, the total capital raised by Xpressbees exceeds $500m.

Xpressbees will use the fresh capital to become a full-service logistics organisation and support the business in its next phase of growth. It will also use the proceeds for product development and hiring talent, the statement added.

“We are excited to welcome our new partners Blackstone Growth, TPG Growth, and ChrysCapital in our growth journey. With their vast network and operational expertise, we believe that they will further fuel our efforts in pursuing newer opportunities and will help expand our footprint,” said Amitava Saha, founder, and chief executive officer, Xpressbees. 

Founded by Saha and Supam Maheshwari in 2015, XpressBees’ services include first- and last-mile delivery and reverse logistics with facilities, such as real-time tracking, multiple payment collection and processing options. Xpressbees works in 3000 cities and delivers over 1.5 million packages daily.

The startup claims to have experienced a near 100% growth in revenue on a year-to-year basis.

“Xpressbees is playing an important role in India’s booming e-commerce sector, which is still at an early stage and has a long runway of development. We look forward to leveraging Blackstone’s deep expertise and global network in logistics and e-commerce to accelerate Xpressbees’s growth,” said Mukesh Mehta, Senior Managing Director in Blackstone Private Equity.

XpressBees had last raised $110m from private equity firms Norwest Venture Partners, Investcorp and Gaja Capital in November 2020.

Source: Markets Insider

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