Mumbai, March 25, 2010: Reliance Venture Asset Management India's first and largest corporate venture capital firm and an arm of the Reliance ADA Group, today announced that it has successfully completed the first round of venture funding in Reverse Logistics Co, a technology enabled end-to-end reverse supply chain solutions company. The announcement is in line with the company's recent rebranding and widening focus on investing in disruptive and sustainable business models with a sector agnostic philosophy. Kleiner Perkins Caufield & Byers and Sherpalo are co-investors in this round of funding in Reverse Logistics Co. along with Reliance Venture Asset Management.
Founded in 2008, Reverse Logistics Co. uses its proprietary technology to help its customers reduce supply chain costs by over 25%, increase asset recovery by over 100%, improve productivity by over 10%, and get a 100% customer satisfaction while growing profitability exponentially.
Said Harshal J. Shah, CEO, and Reliance Venture Asset Management onthe development, "The reverse logistics space is a fairly untapped but promising sector, and will revolutionize efficiency levels of the fragmented Indian supply chain. As an opportunistic investor, we see an immense potential in the industry which is emerging to be an essential part of the business supply chain network across the manufacturing and services industries. Reverse Logistics Co. with its expert management backing will clearly contribute to the India growth story and compete with global compatriots and we are excited to partner them."
Hitendra Chaturvedi, Managing Director and CEO, Reverse Logistics Co. said, "We are thankful to Reliance Venture Asset Management and our other investors for recognizing the potential of this industry and Reverse Logistics Co.'s attempt to make reverse supply chain truly mainstream. With industries across sectors turning to cost optimization with the intent to remain eco-friendly, we will continue to offer optimum solutions to bridge the gap between the end consumer and the manufacturer."
Sandeep Murthy, Partner, Sherpalo Ventures and Kleiner Perkins Caufield & Byers said, "Reverse Logistics Co is a great example of the next breed of companies that will emerge in India. They are effectively leveraging technology to drive value and cost savings while catering to a very large unmet customer need. We are excited to join Hitendra and the Reverse Logistics team in building a global reverse logistics business."
Reverse logistics refers to the backward supply chain network where a product moves from the end consumer to the manufacturer for reuse, disposal or surplus sale purposes with the rationale to increase overall efficiencies. In developed countries, the reverse supply chain management is outsourced and focused to increase the overall shareholder value. However, India is still near the bottom when it comes to supply chain efficiencies - estimates suggest that 3% of its GDP is lost to supply chain inefficiencies and low compliance with the government's e-waste regulations. Hence with its growing importance, Indian companies are now looking to manage this network as a strategic and critical business area According to market studies, the Indian reverse logistics industry is pegged at 10-15 billion USD which includes the secondary market supplying spares and second hand materials.
About Reliance Venture Asset Management Ltd
Reliance Venture Asset Management Ltd is the corporate venture capital arm of the Reliance ADA Group. Since its inception in early 2006, the company has advised and / or invested in deals to the tune of over $4 billion. Stage, geographic and sector agnostic in its investment philosophy, Reliance Venture Asset Management has a global portfolio to its credit and has invested in promising companies such as India's largest online travel portal, Yatra.com, Suvidhaa Infoserve, Stoke Inc, Pelago Inc, Sequans Communications, E-Band Communications, Seedfund and two MIT-startups, Dhama Innovations and Scalable Display Technologies. Some of the transactions they had advised the Reliance ADA Group on include the $300 million all-cash acquisition of San Francisco-based, Yipes Inc. by Reliance Communications, $82 million acquisition of UK-based, Vanco plc, and eWaveWorld, a $500 million initiative to bring 3G and 4G to 50 countries around the world by 2012. Headed by Mr. Harshal J. Shah, an MBA alumnus of Wharton School of Business, a Truman Gray Scholar with dual degrees from MIT, and an Andover Scholar from Phillips Academy in Andover, USA, the company comprises of professionals who bring over 50 years of cumulative experience and a solid academic base (MBAs - Ivy League, Technologists from premier Indian & International Universities & Chartered Accountants). The company was recently ranked 30th in the Red Herring Top 100 Global Venture Capital Firms in 2009 and was the only India based corporate VC company to feature in the ranking. For more information on the company, kindly log on to www.relianceventure.com<http://www.relianceventure.com>
About Reverse Logistics Co
Reverse Logistics Co provides a one stop, technology enabled, comprehensive reverse logistics solutions for the Indian market. Reverse Logistics Co. understands that the power of reverse logistics is in data and so its solution's backbone is its proprietary technology platform that provides end-to-end data visibility of the returned products from point of origin to its final disposition. Reverse Logistics Co's technology platform is a culmination of over 75 years of domain experience of its management team members. The company's single goal is to help companies make their reverse logistics process a competitive advantage allowing them to focus on their core competency of delighting customers through world class products.
About Kleiner, Perkins, Caufield & Byers Since its founding in 1972, KPCB has backed entrepreneurs in 450 ventures, including AOL, Align, Amazon.com, Citrix, Compaq Computer, Electronic Arts, Genentech, Genomic Health, Genprobe, Google, Hybritech, IDEC Pharmaceuticals, Intuit, Juniper Networks, Netscape, Ligand Pharmaceuticals, Lotus, Nuvasive, Sun Microsystems, Symantec, Verisign and Xilinx. KPCB portfolio companies employ more than 250,000 people. More than 150 of the firm's portfolio companies have gone public. Many other ventures have achieved success through mergers and acquisitions. More information about KPCB is available at www.kpcb.com<http://www.kpcb.com>
About Sherpalo Ventures Ram Shriram started Sherpalo in January, 2000, with the goal of applying his wealth of operating and company building experience to promising early stage ventures. As a technology industry insider for over 25 years he has worked in companies large and small across all functional areas and through fluctuating business cycles. He is always eager to roll up his sleeves and work closely with founding teams on the challenging issues that confront and sometimes confound early stage ventures. Sherpalo's mission is to guide and mentor exceptional entrepreneurs in taking their disruptive ideas and technology and turning them into successful businesses. More information about Sherpalo is available at www.sherpalo.com<http://www.sherpalo.com>