Ecommerce-focused logistics firm Xpressbees has acquired New Delhi-based courier firm Trackon in an all-cash transaction.
According to Xpressbees CEO Amitava Saha, he will expand Trackon across the country by leveraging the network already in place at his logistics company.
With roughly 5,000 pin codes served, Trackon has primarily served the country’s northern and western regions. Xpressbees is present in around 15,000 pin codes.
“We will expand Trackon using our network and also look at cross-selling our existing services through the franchise network of Trackon,” Saha said.
There will be no change to the company’s brand identity as part of the acquisition, and Prabhat Kumar Anand, the company’s founder and CMD, will continue to lead it for at least the next two years.
The cofounders of Trackon, Pramod Kumar Singh, Dinesh Rautela, and Yoginder Kumar Dabas, have resigned and are moving as part of the agreement.
“Trackon is a Rs 350-crore revenue firm and with our scale and reach the combined strengths will help improve the bottom line of our firm as well,” Saha said, adding there will be technology-led improvements for Trackon going forward.
He added that Xpressbees plans to expand Trackon’s presence in smaller towns and cities in eastern India.
The acquisition is being funded from its existing cash balance, Saha said.