Ecom Express sees exit of 150 employees ahead of Delhivery merger: Report

Logistics firm Ecom Express has seen significant workforce changes ahead of its acquisition by Delhivery. Approximately 150 mid-level and regional operations employees have voluntarily resigned, according to a report by Livemint.

These departures coincide with the company's ongoing integration process with Delhivery.

Additionally, Ajay Chitkara, CEO, Ecom Express, along with other senior executives, are expected to exit the company following regulatory clearance.

The acquisition, valued at Rs 1,407 crore, will see Delhivery acquiring a 99.4% stake in Ecom Express. In a notice to the stock exchanges, Delhivery said the acquisition will provide it with scale and enhance its value proposition in the market.

“Logistics is a scale-driven business where economies of scale lead to higher efficiencies, enabling players to provide higher quality services at more competitive prices,” it said.

“Delhivery is among India’s leading fully-integrated logistics service providers with significant scale advantages and will be the ideal shareholder for Ecom Express’ next phase of growth,” Ecom Express Founder K Satyanarayana noted in a statement.

Founded in 2012 and headquartered in Gurugram, Ecom Express has positioned itself as a logistics service provider for the retail and ecommerce industry. It reported a revenue of Rs 2,607.3 crore for FY24.

The resignations and leadership changes are part of the broader restructuring efforts as the two companies prepare for consolidation.

However, both the companies denied on comment on the recent development.