Xpressbees, a logistics company based in India that collaborates with numerous e-commerce businesses within the nation, announced on Monday that it has secured $110 million in a recent funding round, coinciding with the expansion of online shopping in the world’s second-largest internet market.

The Series E funding for the startup, headquartered in Pune, was spearheaded by private equity companies Investcorp, Norwest Venture Partners, and Gaja Capital, as stated by the five-year-old company. Having completed its Series D funding three years prior, Xpressbees has now raised a total of $175.8 million, according to data from Tracxn. This latest round has valued the company at over $350 million.

Xpressbees provides delivery services to more than 1,000 clients, including major players like Paytm, a financial and e-commerce services provider; Meesho, a social commerce startup; Lenskart, an eyewear retailer; Xiaomi, a mobile phone manufacturer; NetMeds, an online pharmacy; and Snapdeal, an online marketplace. The company operates in over 2,000 cities and towns and currently processes more than 2.5 million orders daily, a significant increase from approximately 600,000 orders per day last year.

“We are extremely impressed by their dedication to customer satisfaction and their efficient use of capital, which has generated outstanding feedback from leading companies in the e-commerce industry,” commented Niren Shah, Managing Director and Head of Norwest Venture Partners in India, in a press release.

Xpressbees originated as an internal initiative within FirstCry, an e-commerce platform specializing in baby products, in 2012. In 2015, it transitioned into an independent entity, with Amitava Saha, co-founder and Chief Operating Officer of FirstCry, assuming the role of Chief Executive Officer at Xpressbees. Supam Maheshwari, the co-founder of FirstCry and its current Chief Executive, also serves as a co-founder of Xpressbees.

The company intends to utilize the newly acquired funds to enhance automation within its hubs and sorting facilities, and to broaden its delivery network to encompass the entire country. “I am pleased with the positive influence we are having on the logistics landscape in India,” stated Saha in a press release.

The growth of India’s logistics sector is a key factor, estimated by NVP’s Shah to be worth $200 billion. “We remain confident that innovative, technology-driven logistics companies like Xpressbees will continue to be essential to the development of the e-commerce sector in India,” he added.

Online retail sales, representing less than 5% of total retail sales in India, experienced a substantial surge during the pandemic following a nationwide two-month lockdown imposed by New Delhi. Amazon India and Flipkart, owned by Walmart, both reported record sales increases during their festival sales event last month. These companies created over 150,000 temporary positions to manage the increased order volume. Xpressbees collaborates with a workforce of more than 30,000 delivery personnel.

Xpressbees faces competition from both established companies and emerging startups, including Delhivery, which achieved unicorn status last year, and Ecom Express, which serves approximately 2,400 cities and towns across India.