In a significant development for India’s logistics sector, Delhivery Ltd has approached the Competition Commission of India (CCI) to secure clearance for its planned ₹1,400 crore investment in Ecom Express. The move, announced earlier this month, would give Delhivery a controlling stake in the e-commerce-focused logistics company.
The proposed deal, revealed on April 5, 2025, is now awaiting regulatory approval, a crucial step before it can proceed. Under the terms, Delhivery plans to pay ₹1,400 crore in cash to acquire the controlling interest, signaling a bold expansion strategy in the fast-evolving logistics market.
Strengthening Presence in Logistics
Both companies bring complementary strengths to the table. Delhivery, already a major player offering integrated logistics services across India, is looking to bolster its footprint further. Ecom Express, with its deep focus on e-commerce logistics solutions, aligns well with Delhivery’s ambition to provide end-to-end services in a rapidly digitising economy.
In their application to CCI, the companies emphasized that the transaction would not negatively impact competition in the Indian market. Instead, they argued that the merger would enable them to meet critical economic demands, including lowering logistics costs, enhancing delivery speed, and improving service reach across the country.
Business Overlaps and Market Definition
According to the notice submitted to CCI, the companies acknowledged some areas of business overlap, particularly in express parcel delivery and warehousing services, which could be considered part of the related market in India. Additionally, vertical relationships were noted between intralogistics automation services (upstream) and broader logistics services (downstream).
Both companies, however, insisted that the overlap would not suppress competition. Instead, the transaction would increase efficiency, customer service, and operating scale. The plans are to make additional investments in infrastructure, technology, networks, and human resources after the transaction.
What Happens Next?
Examining mergers that might result in anti-competitive behavior is a crucial function of the Competition Commission. CCI’s green signal is necessary for deals larger than a specific threshold in order to maintain fair and healthy market dynamics.
If the agreement is approved, it may create new opportunities in India’s logistics industry, improving services for both consumers and e-commerce companies. But the future of this significant consolidation is still up in the air until the CCI issues its decision.
Also Read: Delhivery to Acquire Ecom Express for ₹1,407 Crore
