Logistics startup Rivigo raises Series B round of $30 million
Logistics startup Rivigo has raised $30 million in a Series B round, with equity and debt financing. The round was led by existing investor SAIF Partners. The company intends to use the funds for expansion, hiring technology talent, adding IoT, automation and data sciences.
Deepak Garg, Founder and CEO of Rivigo, said,
Rivigo has been consistently committed to innovate in the high-growth logistics space in the country and make these services simple, efficient, safe and sustainable for businesses. We’re thrilled with the faith that SAIF Partners and other investors have shown in our unique approach to logistics. We’ll be using the proceeds from this round to ramp up our operations.
Founded in 2014 as TruckFirst, the company currently provides high quality services across major industry verticals such as e-commerce, FMCG, auto, pharma and the cold-chain space.With over 550 company-owned trucks, Rivigo offers line-haul solution and claims to lower transit time by 50-70per cent compared to typical operators. It services 170 unique routes across 18 distinct route types and has 40 hubs across the country.
The company claims its puts emphasis on driver satisfaction and training.It provides delivery services at a pan-India level including otherwise difficult geographies such as the North East and Eastern parts of India.
Deepak Gaur, Managing Director, SAIF Partners India, said,
The tech-enabled logistics space in India is robust and has tremendous potential. We also anticipate greater growth for this segment in view of the impending GST Bill. We were particularly impressed by their smart use of tech and unique operating model that ensures high driver satisfaction, reliability and unprecedented delivery times.
Importantly, this is the second investment in the logistics space in the last week. Bengaluru-based online logistics marketplace BlackBuck snapped up $25 million led by Tiger Global and Apoletto, DST Global-Yuri Milner’s Founders Fund.
According to Goldman Sachs, Indian e-commerce industry, which is projected to reach the $100-billion mark in FY20,opens up an unprecedented demand for logistic startups. While startups across segments find it difficult to raise follow-on capital, logistics-focussed startups remain unfazed by the ongoing funding crunch.
This is the fifth major investment in logistics this year. Earlier, Gojavas had raised $20 million from Snapdeal while Ecom Express raised $133 million from Warburg Pincus in June this year.