CDC Group plc. — Combination C-2021/01/808

COMPETITION COMMISSION OF INDIA 10th February 2021 Notice under Section 6 (2) of the Competition Act, 2002 Given by CDC Group plc. CORAM: Mr. Ashok Kumar Gupta Chairperson Ms. Sangeeta Verma Member Mr. Bhagwant Singh Bishnoi Member Order under Section 31(1) of the Competition Act, 2002 1. On 13th January 2021, the Competition Commission of India (‘Commission’) received a notice (‘Notice’) under Section 6(2) of the Competition Act, 2002 (‘Act’), given by CDC Group plc. (‘CDC’/‘Acquirer’). The Notice was given pursuant to the Restated Shareholders’ Agreement executed between inter alia CDC and Ecom Express Private Limited (‘Ecom’/ ‘Target’) on 11th December 2020; option notice dated 18th December 2020; and Share Subscription Agreement executed between inter alia CDC and Ecom on 22nd December 2020. CDC also made voluntary submission vide communications dated 27th January 2021 and 28th January 2021.

2. The proposed combination envisages acquisition of additional 2.78% of the equity share capital of Ecom (‘Proposed Combination’). CDC already holds certain stake in Ecom and as a result of Proposed Combination its shareholding in Ecom will increase to 9.81%. CDC already holds the right of representation on the board of directors of Ecom. Additionally, no action can be taken by Ecom without prior consent of CDC in respect of certain reserved matters. The Proposed Combination does not envisage acquisition of any additional rights relating to the management and affairs of the Ecom by CDC.

(Combination Registration No. C-2020/01/808)

3. CDC, formerly known as the Commonwealth Development Corporation, is a Development Financial Institution. It has been investing in businesses in developing countries, including India, for the last 70 years. CDC is wholly-owned by the Government of United Kingdom. In India, CDC currently holds investments in entities that are operating in the areas such as micro-finance, banking, healthcare, NBFCs, healthcare, dairy processing, online food retail, financial technology and online food retail.

4. Ecom, a private limited company, carries on the business of providing third party logistics (‘3PL’) services in India. These services can be broadly classified into: (i) Ecom Express Services (‘EXS’); and (ii) Fulfilment and Warehousing Services. Under the EXS vertical, Ecom provides services such as forward delivery, reverse pick-up, return, hyperlocal delivery, assets verification, contact point verification, record verification, e-KYC facilitation for the customers of banks/NBFCs, etc.

5. The activities of CDC and Ecom do not exhibit horizontal or vertical overlap. However, (i) a portfolio entity of CDC, engaged in grocery supplies, is seen to have availed hyperlocal delivery services of Ecom; (ii) portfolio entities of CDC, operating in India, are customers of Ecom in the sphere of contact point verification and document collection; and (iii) business activities of another portfolio entity may comprise 3PL services (such as middle-mile / last-mile delivery services). The nature and volume of these interfaces are not significant. Moreover, as a result of the Proposed Combination, CDC is not acquiring any additional rights relating to the management and affairs of the Ecom. Thus, the Proposed Combination is not likely to raise any competition concern.

6. Considering the facts on record including details provided in the Notice given under Section 6(2) of the Act and assessment of the Proposed Combination based on the factors stated in Section 20(4) of the Act, the Commission is of the opinion that the Proposed Combination is not likely to have any appreciable adverse effect on competition in India (Combination Registration No. C-2020/01/808)

in any of the relevant market(s) and therefore, the Commission hereby approves the same under Section 31(1) of the Act.

7. This order shall stand revoked if, at any time, the information provided by the Acquirer is found to be incorrect.

8. The information provided by the Acquirer is confidential at this stage in terms of and subject to the provisions of Section 57 of the Act.

9. The Secretary is directed to communicate to the Acquirer accordingly.