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Logistics company Ecom Express is set to raise over $170 million (Rs 1,424 crore) through a rights issue, according to a regulatory filing.

The company’s Board has passed a resolution to allot 1.57 million compulsory convertible preference shares on a rights issue to its existing equity shareholders, at Rs 9,071 each—the same price as its rights issue last year.

The development was reported by Entrackr first.

The rights issue is expected to be led by the company’s existing investors, including private equity firms Warburg Pincus, British International Investment, and Switzerland-based Partners Group.

The Gurugram-based company plans to use the funds to double down on its reverse logistics and same-day delivery services, which are seeing growing demand.

Founded in 2012, Ecom Express is a technology-enabled logistics solutions provider, operating in all 28 states of the country, across 2,700 towns, servicing 27,000 pin codes.

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With over 150 gateways, processing, and fulfilment centres, the company said it has served over one lakh online sellers and delivered nearly two billion shipments.

Ecom Express last raised $39 million from returning investors British International Investment, Warburg Pincus, Partners Group, and CDC Group in October 2022. The company reported a loss of Rs 91.4 crore for FY22, including non-operational losses, compared to a profit of Rs 43.4 crore a year ago, according to market intelligence firm Tracxn.