FirstCry’s eCommerce logistics arm – Xpressbees, has today announced that it has raised around $8 million in its Series A round of funding from SAIF Partners, Vertex Ventures, and Singapore government’s investment fund Temasek, reports TOI.
Two investors, which invested in this funding round of Xpressbees – SAIF Partners and Vertex Ventures are existing investors in FirstCry as well.
Xpressbees claims to be delivering more than 6,000 shipments per day.
In order to ensure company’s growth, all of the major eCommerce companies have their own logistics arms, including Flipkart, Myntra, Amazon and Snapdeal.
Flipkart, which is currently the leading eCommerce marketplace of India, has recently bought back its logistics arm from WSRetail. Last week, Flipkart poured in around $100 million into its logistics services business and plans to get third-party eCommerce companies onboard.
According to a report of Goldman Sachs India, the online retail market is expected to reach around $36 billion during 2016-17, up from $11 billion in 2014-15.
The person, who is aware of this development, said,
Logistics is still a problem that most e-commerce players are struggling with and everyone is trying to build their own fleet. Xpressbees which started as a logistics support provider for FirstCry is now cashing in on the growing investor interest around this space. It has other e-commerce players as its partners including Snapdeal.
FirstCry, which claims to be the Asia’s leading eCommerce website for baby products, has recently raised funding from Ratan Tata.