More money into the logistics and supply chain sector which has rapidly emerged as the backbone of thriving e-commerce in the country. Within just 2 weeks of raising its $8 Million Series A round, the logistics arm of baby products retailer Firstcry, Xpressbees has raised another 85 crores from existing investors.
The investors include SAIF Partners, IDG Ventures India, NEA, Vertex Ventures and Valiant Capital. The fresh funds will be deployed to upgrade the technology of Xpressbees as well as to expand it to more cities.
Currently, Xpressbees claims to deliver more than 1,00,000 deliveries a day in 200 cities, covering over 3000 pin codes. It also offers ‘same day’ and ‘next day’ delivery in almost 100 cities.
We will conservatively look to double the number of deliveries by next year, and there could also be inorganic opportunities as well,
said CEO of Xpressbees Amitav Saha.
Xpressbees was originated first as the logistics arm of Firstcry for the express delivery of its products in 2012. The business was built by the FirstCry founders Supam Maheshwari and Saha. Along with time, as the company saw the immense scope of e-commerce logistics in India, it ventured into third-party logistics (3PL) also in 2015.
Later that year, the company spun out from FirstCry as BusyBees functioning as an independent business. Many other major e-commerce companies, for instance, Flipkart and Amazon, have been focussing heavily on developing their own logistics network.
And as many more specialised e-commerce ventures continue to come up, there is undoubtedly a huge need of properly streamlined logistics networks.
In fact, according to a report by India Infoline Finance Limited(IIFL), the order volume for e-commerce shipments is expected to increase 13 times between 2014 and 2020 with overall volume reaching to 2,000 tonnes per day by the year 2020.
Xpressbees aims to compete with other e-commerce focused logistics players like Delhivery and Warburg Pincus-backed Ecom Express. It also serves as the logistics partner of Snapdeal in addition to its parent company FirstCry.