Avendus Future Leaders Fund buys part of Elevation Capital's stake in Xpressbees for Rs 195 crore

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Avendus Future Leaders Fund has bought a minority stake in XpressBees from Elevation Capital for Rs 195 crore, the company said in a statement on August 2.

Avendus Future Leaders did not disclose any further financial details of the deal. According to data from Tracxn Technologies, Elevation Partners had a 12.32 percent stake in Xpressbees, which was valued at Rs 1,060 crore as of April 2022.

Avendus Future Leaders, the investing arm of Avendus Group, has two funds and has invested in 11 companies to date including Xpressbees. The company had launched its first fund in 2019 and said that it has deployed it fully. With its second fund, Avendus has invested in six deals including Xpressbees and said that it has assets under management of as much as Rs 1,500 crore.

Avendus has invested in listed and unlisted companies like Lenskart, Delhivery, VerSe Innovation (parent of Dailyhunt), Bikaji Foods, National Stock Exchange, SBI General Insurance, Licious, Juspay, and Zeta.

“In the last few years, the logistics sector has witnessed a revolutionary change and has become a vital enabler for facilitating commerce in India," said Ritesh Chandra, Managing Partner, Avendus Future Leaders Fund.

"Xpressbees, with its asset-light franchise model coupled with cutting-edge technology deployment across all its functions, is all set to occupy a leading position in the logistics landscape in India. Avendus is truly excited to partner with them in this journey of value creation,” Chandra added.

Xpressbees had raised $300 million in February this year at a valuation of $1.2 billion. The round was led by  led by Blackstone Growth, TPG Growth and ChrysCapital. The company was also reportedly looking at an initial public offering (IPO) in 2022.

Xpressbees, founded in 2015 by serial entrepreneurs Amitava Saha and Supam Maheshwari is an end-to-end logistics provider. The company claims to be present in over 20,000 pin codes in India and said that it has catered to more than 80,000 associations.

In 2020-21 (FY21), the company had clocked a revenue of Rs 1,019.8 crore, a jump of 33 percent from the previous year. Its loss had narrowed to Rs 65.5 crore from Rs 102.7 crore in FY20 (2019-20).

In June, at an event in Mumbai, Amitava Saha had said that Xpressbees had turned profitable from June 2020 onwards.