Strategic Move: XpressBees Acquires Courier Firm Trackon
XpressBees, an e-commerce-centric logistics startup, has completed the acquisition of Trackon, a company specializing in logistics and supply chain operations. This transaction holds significance as it signifies XpressBees’ inaugural acquisition since its establishment in 2015. The acquisition had been previously reported by Entrackr, an exclusive source in the know of the development.
The move highlights XpressBees’ strategic efforts to bolster its presence and capabilities in the competitive e-commerce logistics landscape. This acquisition could potentially enhance XpressBees’ operational efficiency, expand its service offerings, and provide a more comprehensive logistics solution for the growing e-commerce market.
With the acquisition of Trackon, XpressBees is set to make its foray into the SME (Small and Medium-sized Enterprises) courier space. The logistics startup intends to leverage its established network to expand the operations of Trackon throughout India. The strategic move aims to tap into the potential of the SME sector and provide tailored logistics solutions to cater to their needs. However, specific financial details about the size of the deal have not been disclosed as of now.
In the aftermath of the acquisition, Prabhat Kumar Anand, the founder and CMD of Trackon, will remain at the helm of the company, leading its operations independently for a period of at least two years. This continuity in leadership is expected to provide stability and expertise as Trackon integrates with XpressBees.
On the other hand, the other three co-founders of Trackon – Pramod Kumar Singh, Dinesh Rautela, and Yoginder Kumar Dabas – have opted to step down from their positions and move on from the company as part of the acquisition arrangement. Their departure signifies a strategic shift and realignment of the company’s leadership structure to align with XpressBees’ objectives and plans for growth in the logistics and supply chain sector.
P. K. Anand, the CMD and co-founder of Trackon, expressed optimism about the acquisition, stating, “By combining our experience with the capabilities of Xpressbees, we will be able to expand our service lines to our existing clients, while continuing to offer best-in-class services.” His words highlight the strategic benefits of the acquisition, emphasizing the potential for enhanced service offerings and improved customer experiences as the two companies collaborate and leverage their strengths in the logistics and supply chain industry.
Having been in operation for two decades, Trackon boasts itself as a significant player in the industry with a reported revenue of Rs 350 crore. The company’s extensive reach covers 5,600 pin codes across India, and it has ambitious plans to further expand its services to cover a total of 12,000 pin codes within the next few years. While the financial report for FY23 is still pending, Trackon revealed operating revenue of Rs 283 crore in FY22. Moreover, the company achieved profitability during this period, with profits amounting to Rs 8.22 crore, highlighting its financial stability and growth trajectory.
The acquisition by XpressBees aligns well with these plans, as it opens up avenues for synergistic growth and an even broader market presence.
In the realm of new-age logistics and supply chain companies, XpressBees stands as a formidable player, ranking third in terms of revenue. With an impressive revenue of nearly Rs 2,000 crore as of FY22, the company has firmly established itself in the industry. While the financial figures for FY23 are yet to be released, XpressBees’ strong track record and strategic moves such as the acquisition of Trackon position it as a key player in the dynamic landscape of logistics and supply chain services in India.
XpressBees achieved the prestigious status of a unicorn following a successful funding round in February 2021 that raised $300 million. This injection of capital signaled not only the company’s robust growth but also its increasing significance in the market. In the subsequent months, XpressBees continued to attract attention and investment, facilitating secondary transactions amounting to a substantial $65 million starting from August 2022. This not only underscores the confidence investors have in the company but also highlights its potential for further expansion and innovation in the logistics sector.
The recent news that Ontario Teachers’ Pension Plan Board is considering a significant investment of $100 million into XpressBees further solidifies the company’s position as an attractive investment opportunity. This potential infusion of capital from a prominent institutional investor suggests that XpressBees’ growth trajectory and strategic initiatives have captured the attention of global financial players. With its demonstrated track record and a series of strategic moves, including the acquisition of Trackon, XpressBees is poised to capitalize on the evolving e-commerce landscape and continue its ascent in the logistics and supply chain sector.
