Logistics unicorn Xpressbees has secured INR 195 Cr as a secondary investment from Avendus fund called Avendus Future Leaders Fund II.
The latest development comes after Xpressbees parent company Busybees Logistics Solutions reported a 33% growth in its operating income and also curtailed its losses by 36% in the 2020-21 financial year.
Founded in 2015 by Amitava Saha and Supam Maheshwari Xpressbees, is a spin-off of FirstCry, an e-commerce company targeting children. The logistics startup claims to be present in 3,000 Indian cities and delivers more than 1.5 million parcels daily and also professes to manage 100 nodes across the country with a capacity of over 10 Lakh sq. ft. Xpressbees competes with listed logistics startup Delhivery and IPO-bound startup Ecom Express.
Amitava Saha, Founder of Xpressbees, said, “We are excited to partner with Avendus at this stage as we continue our journey to become a leading player in logistics. We have built a valuable brand and believe this announcement is a great testament to the opportunity that exists in the logistics space.”
Founded in 2021, Avendus Future Leaders Fund II manages assets under management (AUM) of nearly INR 1,500 crore. Its portfolio companies include Lenskart, SBI General Insurance, Licious, Juspay and Zeta, among others.
Ritesh Chandra, Managing Partner at Avendus Future Leaders Fund, said, “Xpressbees, with its asset-light franchise model coupled with the deployment of state-of-the-art technology across its functions, is poised to take a leadership position in the logistics landscape in India. Avendus is truly excited to partner with them on this value creation journey.”
In February, Xpressbees joined the coveted unicorn club after raising $300 million in its Series F funding round at a post-money valuation of $1.2 billion.
Its cap slate includes Blackstone Growth, TPG Growth, ChrysCapital, Investcorp and Norwest Venture Partners, among others.
According to a Statista report, India’s logistics market, which was pegged at $250 billion in FY2021, is likely to become a $380 billion market by 2025, growing at a CAGR of 10-12% by 2025.