Looking to increase their stake in the Indian e-commerce market, Alibaba will be investing in e-commerce logistics company XpressBees. The Pune-based logistics startup is the logistics arm for several companies and the investment indicates that the race for leading the e-commerce sector is nowhere close to settling down as big players dive in.
While Flipkart had invested in their logistics arm, eKart, recently, Amazon did so in Amazon Transportation Services – through various channels from USA to Malaysia. In India, Alibaba has already invested in companies like PayTM, PayTM Mall, BigBasket and TicketNew. The Chinese-owned firmed is looking to get closer to the Indian market and is increasing its investment portfolio accordingly. There is already more than a billion dollars collectively invested in the Indian market which is proof of India’s potential and how startup businesses are looking to capture these.
With disposable income increasing and digital space gaining more trust, online logistics technology businesses are estimated to reach $9.6 billion by 2020.
Currently, XpressBees handles 170,000 to 200,000 orders a day and can increase their capacity post Alibaba’s investment and compete with others in the space – like Delhivery and Ecom.
Founded by Supam Maheshwari and Amitava Saha, the e-commerce logistics company operates under Busybees logistics solutions. While experts believe that more big money players will soon be involved in this niche market, the problems will continue until large-scale investment in infrastructure is made from the government’s side too.
Big e-commerce brands own their own logistics chain so as to bring each element of the retail value chain under their control. It makes for comprehensive solutions and is then within their control to improve customer experience as well.
The Pune-based the e-commerce logistics company has been in talks for investments for over a year. Currently, their investment partners include SAIF Partners, IDG Ventures India, NEA, Vertex Ventures and Valiant Capital.