Teachers’ Venture Growth (TVG) has invested $80 million in Xpressbees, an end-to-end logistics platform. TVG is the Ontario Teachers’ Pension Plan’s late-stage venture and growth investing arm. The Xpressbees transaction represents Ontario Teachers’ first investment in India through the TVG platform.
The logistics company stated that the monies will be used for future plans but did not provide specifics. Furthermore, the $80 million round is likely to be the last for Xpressbees, which intends to go public soon.
“We believe the logistics sector is on the verge of technological disruption, and this is the right time to expand service offerings to meet the growing needs of businesses and consumers,” said Amitava Saha, founder and CEO of Xpressbeessaid. We are thrilled to be working with the TVG team, who bring extensive knowledge and a global network that will be invaluable as we take our end-to-end platform to the next level.”
TVG is the latest investor in the logistics industry, joining Blackstone, TPG, ChrysCapital, Alibaba, and Gaja Capital.
TrackOn, another logistics player, was acquired by Xpressbees in August. This acquisition enabled the logistics company to enter the customer-to-customer (C2C) courier services market.
Through B2C Express, B2B Express, third-party logistics (3PL), cross-border operations, shipping aggregator, and SME courier services, the logistics company competes with larger competitors such as Delhivery.
According to its website, Xpressbees operates in over 5,000 cities and towns and services 20,000 zip codes. They claimed that the firm distributes over 1.5 million packages per day, compared to Delhivery’s 6.7 million deliveries each day. Furthermore, they have over 100 hubs in India, more than 3 million square feet of storage capacity, and operate at 52 airports throughout the country.
The company recorded a 33% year-on-year (YoY) increase in revenue to Rs 2,531.5 crore in FY23, while losses increased by more than 6X to Rs 180 crore during the same period.
Xpressbees was established in 2015. It began as the logistics arm of Firstcry, a children’s e-commerce portal, but was later spun off as a distinct entity. It has since raised over $600 million in cash and is now valued at $1.4 billion.