Bengaluru-based reverse logistics service provider Blubirch has secured $2 million in angel funding from Chicago Capital ventures, Sanjay Mehta, and others. The startup is an independent end-to-end solution provider for electronics and IT reverse logistics. It helps companies maximise recovery from returned, unsold and unused technology assets for retailers, original equipment manufacturers(OEMs) and enterprises.
The startup was founded by Sapan Jain, Jeby Cherian, Amit Goel, and Jayathirtha P. Katti to provide solutions for IT asset management and remarketing, and to also deal with refurbished customer returns and excess. Since its inception in April 2014, the company claims to have witnessed meteoric growth from its business and user base standpoint.
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Speaking on the occasion, CEO Sapan said, “While technology is at the forefront of what we do, our main focus is to assist our clients manage their complete range of technology assets. The fund raised will be used to further enhance the technology platform and to expand operations across six more cities.”
Blubirch offers its services to enterprises, retailers, and individual consumers. The startup claims to have multiple Fortune 500 companies as clients, with businesses across over 20 countries and about 2,000 resellers in its global network. Sapan added,
We will continue focussing on bringing incremental value to our clients and ensuring that we continue to contribute to a clean Digital India by extending the life of technology products and making these second-life quality products affordable for companies and individuals.
Sanjay, Angel and PE investor, said, “The sheer addressable market size makes Blubirch investment an attractive proposition. We saw exponential growth opportunities in multiple categories.”
According to an estimate, the market size for reverse logistics is $20 billion and is growing at a phenomenal pace. Experts believe that reverse logistics is plagued by mismanaged returns, high distribution costs and retailer–manufacture conflicts, among other reasons. The IT asset disposition market has been growing at 10 per cent CAGR, and by 2020, it is estimated that the market will touch $50 billion in India alone.
Blubirch claims to have a network of over 3,000 partners across the globe for redeployment and is already operating at a run rate of about Rs 100 crore. The startup will use these funds to further expand its services in India and other countries and to strengthen its team to complement capabilities. Blubirch plans to launch its consumer services and expects to reach Rs 60 crore in revenue by early next year.
Over the past few years, the e-commerce sector has grown rapidly in India and, along with it, the need for both forward and reverse logistics has increased. There are a few startups that are doing well in the refurbished market in India: Reboot, a Gurgaon-based startup sells refurbished electronic goods; JustLikeNew.in, an e-commerce platform picks up damaged smartphones, repairs them, and delivers them back to users. They also sell refurbished electronic goods. With backing from Chicago Capital ventures and Sanjay Mehta, Blubirch now has the necessary firepower to go deeper into India and focus on other countries.