Xpressbees plans to use Rs 85 crore to build capacity in northeast states

The logistics arm of baby and mother care product etailer FirstCry was spun off last year into a separate entity to service third party orders.

Payal Ganguly
  • Updated On Mar 28, 2016 at 08:05 AM IST
HYDERABAD: Ecommerce logistics company Xpressbees plans to use the Rs 85 crore it has raised from existing investors to build capacity in the Northeast where it wants to encourage buyers from smaller towns to visit the service centres it is setting up to collect the goods they have ordered.

The move comes at a time when online marketplace Flipkart has announced a partnership with Apollo Pharmacy network as a pickup point for ecommerce shipments. Amazon had partnered with Vakrangee for pickup in rural and semi-urban areas last year.

The logistics arm of baby and mother care product etailer FirstCry was spun off last year into a separate entity to service third party ecommerce orders. The company is building its network in high margin regions with underwritten commitments from its e-commerce partners, starting with the seven sister states.

Apart from India Post and Warburg Pincus backed Ecom Express, which had forged regional partnerships to serve the Northeast, very few companies have served the region by delivering to stocking points and distributors.

Experts said the high shipment costs, which ecommerce players are willing to pay, are a major attraction for third-party logistics companies to create a network in the region and has attracted new players.

At present, 10 per cent of about 100,000 orders serviced by Xpressbees daily are generated from the Northeast.
  • Published On Mar 28, 2016 at 08:01 AM IST
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