Indian firm Elbee Express to invest EUR 35m in expansion
Elbee Express plans to invest Rs 2 billion (EUR 34.82 million) for its expansion over the next three years thanks partly to financing from a new investor.
The expansion plan includes an increase of the company’s branches from 132 to 250 within the next 4-5 months, Elbee Express said in a statement. This will enable it to cover 15,200 locations in India. The company will also upgrade its technology.
Nikhil Shah, Executive Director of Elbee Express, said: “We have an aggressive expansion plan to double the number of branches in the next 4-5 months. Through this we are looking to provide a wider distribution reach to our premium customers in Tier II and III cities.”
Elbee Express signed up telecommunications firm Airtel last autumn to provide a new electronic tracking system for some 400 delivery staff under a three-year contract. Airtel will supply hand-held scanners enabling Elbee staff to record POD data and transmit it by the Airtel GPRS network to the company’s central IT server. Customers will then be able to track their shipments on a real-time basis.
Shah told The Hindu newspaper that Elbee plans to focus on the domestic market but was also looking at entering the Chinese market through a cooperation with a Chinese company.
The initial investment of approximately Rs 250 million with an equal amount will be invested by two shareholders, Clearstone Venture Mauritius, an international investing arm of the US venture capital firm Clearstone Venture Partners, and Rakesh Jhunjhunwala, a well-known Indian equity investor. Previously, Kotak Mahindra Investments also took a minority stake in the company. These shareholders jointly hold a majority stake in the company.
