Funded by Warburg Pincus, Ecom Express is looking to launch an initial public offering (IPO) for Rs 3,000 crore to set foot into the main market.

Reports claim that bankers including Kotak Capital, IIFL, Axis Capital, and UBS have been chosen by the third-party logistics company.

Warburg Pincus owns 33.76 percent of Ecom Express, while British International Investment and Partners Group, both domiciled in Switzerland, possess 17.57 percent and 6.48 percent of the company, respectively.

With unstable market conditions, Gurugram-based Ecom Express which is competing with Delhivery and Xpressbees as well as Flipkart's Ekart Logistics and Amazon Transportation Services, postponed its intended public IPO in 2022.

In the years 2020 and 2021, about eight startups—Paytm, Nykaa, Zomato, Nazara Technologies, CarTrade, and EaseMyTrip— successfully launched their initial public offerings (IPOs) with success.

Only a small number, notably Delhivery and Tracxn, were able to raise money through public issues in 2022, while the others were seen to postpone their ambitions due to the IPOs' subpar performance following listing.

Delhivery, which went public in May 2022, is now selling for Rs 400, which is 20 percent less than what it paid for an IPO of Rs 487.

Additionally, the business serves Meesho, an e-commerce platform supported by Prosus that just introduced Valmo, an internal logistics service provider.

According to analyst estimates, third-party logistics companies who have seen substantial volume growth from the Bangalore-based e-tailer may be impacted by Valmo's expansion.

In FY2023 Ecom Express had a 20 percent rise in revenue to Rs 2,548 crore.

In comparison to a loss of Rs 91 in FY22, the company reported a loss of Rs 375 crores in FY23.

In FY23, the company's expenses increased by around 30 percent to Rs 2,856 crore.

Ecom Express handles e-commerce shipping for consumer companies including FabIndia, Decathlon, and Caratlane as well as online marketplaces.