In a movement that indicates both consolidation and survival in the third -party logistics space (3PL) of India, Delhivery last week announced his intention to acquire rival Ecom Express for € 1,407. The agreement, exposed in a stock file, has sent ripples to the logistics ecosystem, arriving at a time when the e -commerce sector is witnessing a slowdown in growth and thinning of the margins.

The acquisition is being considered widely as a sale of anguish for Ecom Express, who had presented his Prospect Project of Red Herring (DRHP) in August last year, with the aim of a public list with a valuation of € 7,300. To date, the company is acquired by less than half of this amount, emphasizing the growing stress in the 3PL B2C Express Logistics segment.

“This is a sale of anguish, but Delhivery is now placed more to capture remote cities. For others, consolidation is inevitable,” says Satis Meena, Date Intelligence Advisor and Co -Founder of Sutradhar.

The fall of an ex-corredor

Once a formidable player in e -commerce logistics, Ecom Express has seen his fortunes decrease in exercise 24.The shipping volumes increased by only 10%, revenue growth stalled by 2% (2,609 ₹ crore) and clean losses were extended by 40% up to 255 ₹ crore. A key vulnerability was its dependence on a single client-meESHO-which, accordingly, it was supposed to bring almost half of its income. When Meesho went to his internal logistics arm Valmo, the impact on Ecom was fast and serious.

“Excessive confidence in a single client is always risky. When the dynamics change, there is little space to recover,” says Meena.

A strategic victory for Delhivery

In contrast, Delhivery has reported stable finances. The company recorded revenue from 8,142 ₹ Crore in the 24th year and reduced its loss to 249 ₹ Crore. More prominent, it became profitable in the first quarter of the 25th.

By acquiring Ecom, Delhivery gains access to a deeper infrastructure and an improved scope in levels 3 and 4-Zones where Ecom had a solid footprint and where platforms like Meesho have a growing presence. The movement is expected to strengthen the scale and operational efficiency of Delhivery at a time when the margins of the sector are under pressure.

Analysts say the acquisition reflects wider heads in space 3PL. “There is no place for too many big players in the Ecosystem 3PL,” says Meena. “The growth of e -commerce is slowing down and volumes do not grow as projected. Consolidation is obliged to accelerate.”

In fact, e-commerce shipping volumes, once expected to grow 30-40% per year, have been reduced to a modest 10-15%. The increase in fast trade (Q-commerce) has further interrupted the landscape by removing small tickets and groceries away from traditional e-commerce traditional platforms, reducing the volume pool for 3PLS.

According to a report by Emkay Global, the irrational prices of well -capitalized players have affected the profitability of the sector. But distressed evaluations as ECOM can now force a course correction, which can face the industry benefits pool.

What is ahead

The agreement between Delhivery and Ecom Express is more than a simple acquisition: it indicates the beginning of a 3PL market in India. With the increasingly difficult capital and the feeling of the public market, it is only likely that diversified and efficient capital players survive.

As Delhivery strengthens his position, the pressure is now in other players like Blue Dart and DTDC. In a maturation market, survival will not only depend on the scale, but on the strategy.