A month after logistics firm Delhivery announced the takeover of rival Ecom Express, the latter has witnessed a wave of resignations. While Delhivery CEO Sahil Barua said the company could absorb "qualified operating staff from Ecom Express," a recent report suggests otherwise.
According to a Mint report, around 150 mid-level and regional employees at Ecom Express have already resigned. CEO Ajay Chitkara, along with several senior executives, is also expected to step down once the proposed acquisition receives clearance from the Competition Commission of India (CCI).
Citing two sources, the report said CCI’s approval is likely within 45 days, and several roles are expected to become redundant post-acquisition, triggering recent exits.
Earlier, in February, before Delhivery’s takeover announcement, cash-strapped Ecom Express laid off at least 500 employees and shelved its IPO plans. At that time, the company had around 15,600 employees and was delivering across more than 27,000 pin codes.
Delhivery Says It Can Absorb Key Staff
During its fourth-quarter earnings call, Delhivery CEO and MD Sahil Barua said, “The regular attrition in Delhivery's network itself will provide us sufficient room to absorb all of the qualified staff from Ecom Express across our operations around the country. Needless to say, at the time of their onboarding into the Delhivery network, they will also undergo rigorous training via the Delhivery Academy.”
In April, Delhivery signed a definitive agreement to acquire a controlling stake in Ecom Express for around Rs 1,400 crore in cash. Less than a year ago, Ecom Express had been valued at approximately Rs 7,000 crore. However, its business took a hit when client Meesho launched its own logistics arm, Valmo, wiping out more than half of Ecom's volumes. Additionally, Ecom faced stiff competition from players like Delhivery and XpressBees, both of which operate their own fleets and offer integrated services, including B2B logistics.
The acquisition is currently awaiting approval from the CCI, after which Ecom Express will become a subsidiary of Delhivery. The application for approval was filed on April 19.
According to Delhivery, there is close to 100% overlap in customer count and over 95% overlap in revenue between the two companies. Both have served the same clients for years and share similar customer-facing processes—such as package tracking, billing, reconciliation, and collections.
“No further technology integrations will be needed,” the company said in an FAQ regarding the takeover. “In the case of SpotOn, we had to onboard a large number of unfamiliar customers and establish new contracts and commercial agreements, which made integration complex. That won’t be the case with Ecom Express.”
