When clients turn rivals: The unravelling of Ecom Express

Last week, reports emerged that Ecom Express had laid off about 500 people and shuttered many of its warehouses. According to a report by Mint, the Gurugram-headquartered logistics player is effectively scrapping coverage of more than 3,000 pin codes as it has begun the process of closing over 1,000 delivery centres and 20 major hubs.

For Ecom Express, this is a drastic departure from the narrative. Over the past year, the company has beaten the initial public offering (IPO) drum, even filing draft papers with markets regulator Sebi (Securities and Exchange Board of India) in August last year for a Rs 2,600 crore listing. Now, those plans are on pause, with the company’s focus shifting to cutting costs. Ecom Express did not answer The CapTable’s specific questions about these developments, simply stating that “This is an ongoing process based on business needs and requirements from time to time”.