India, April 12 -- Last week, the Indian startup ecosystem witnessed a different kind of distress sale. Typically speaking, such deals involve companies going through a downturn, but this time it was for an IPO-bound company - Ecom Express.

Listed major Delhivery informed stock exchanges that it is acquiring 99.4% stake in Ecom Express for INR 1,407 Cr ($165 Mn), an almost 80% valuation drop from Ecom Express's last valuation of INR 7,300 Cr ($850 Mn).

The deal will go down in history for two reasons. Firstly, this distress sale is arguably the most severe of its kind in Indian startup history. Global marquee investors are expected to take a massive loss in the exit - as we will see.

And the second: Delhivery, an arch rival for Ecom Ex...