This investment will be used to help drive further growth for the Xpressbees platform and support the company’s strong management team with their future ambitions, Xpressbess said
Mumbai: Third-party logistics platform Xpressbees on Tuesday said it received an investment of USD 80 million (Rs 666 crore) from Teachers’ Venture Growth (TVG), which will help the company drive further growth.
TVG is the late-stage venture and growth investment arm of the Ontario Teachers’ Pension Plan.
This marks Ontario Teachers’ first investment in India from the TVG platform, Xpressbess said in a statement.
TVG has joined a set of marquee investors in the company, which includes Blackstone Growth, TPG Growth, ChrysCapital, Khazanah Nasional Berhad, Alibaba Group, Elevation Capital, Investcorp, Norwest Venture Partners and Gaja Capital, it said.
Through its subsidiary NimbusPost, which has over 6,000 clients and ships through 27 local and national courier partners, Xpressbees provides a software-as-a-service (SaaS) based shipping aggregation platform for SME and D2C (direct-to-consumer) brands.
“India is a critical market for our TVG Asia strategy, where we look to lead or co-lead rounds, and Xpressbees is a culmination of one such proprietary opportunity,” said Kelvin Yu, Senior Managing Director, Teachers’ Venture Growth.
With express logistics being the need of the hour for multiple industries, the company has expanded focus across pharma, healthcare, manufacturing and many other segments, and has helped scale multiple e-commerce platforms by providing logistics solution, it said.
“We believe the logistics sector is at the cusp of technological disruption and this is the right time to expand service offerings to address the growing needs of businesses and consumers.
“We are elated to partner with the TVG team who bring rich experience and a vast global network which will help as we scale our end-to-end platform to cater to the next level,” said Amitava Saha, Founder and CEO of Xpressbees.
This investment will be used to help drive further growth for the Xpressbees platform and support the company’s strong management team with their future ambitions, Xpressbess said.
Xpressbees said it also plans to expand its suite of service offerings through selective inorganic acquisitions.
It has recently acquired TrackOn to enter SME/C2C courier services, as per the statement.
“We are excited about the market opportunity for end-to-end logistics and supply chain solutions that can meet the needs of a diversified customer base across industries, including e-commerce in India. Led by a strong team, Xpressbees has established a highly scalable and efficient asset-light model with proven execution capabilities,” said Deepak Dara, Senior Managing Director and Head of India at Ontario Teachers.’
Xpressbees aligns with TVG’s thesis for Asia, of partnering with exceptional management teams looking to leverage technology to accelerate growth in an attractive end market that has a long runway for innovation and development, Yu added.
Avendus Capital was the exclusive financial advisor on this transaction, the company said.