Logistics and software company LogiNext has acquired YourGuy, a Mumbai-based cross-category last mile delivery startup. The acquisition is aligned for strengthening and expanding LogiNext’s last mile delivery platform Sprintr, launched last week.
Logistics management system Sprintr is a technology-driven platform to both clients and delivery partners. Aggregating delivery capacity through providing technology to delivery companies, clients can now just push orders and delivery requests through the same software across India. This enables the big businesses to get their delivery sorted, while giving a business to their delivery partners free of cost.
The Sprintr platform has an active network of 250 delivery personnel on ground, the platform is managing close to over 5000 deliveries daily. Sprintr is currently operational in Gurgaon, Mumbai, Jaipur, and Ahmedabad, handling both pre-scheduled and on-demand orders.
Founded in 2014, YourGuy is valued at $1.5 million, while processing 4,000 deliveries per day, working for clients in segments including pharmaceuticals, documents, food, retail, laundry, and grocery. Further, being a B2B delivery portal, it hosts clients like Godrej Nature's Basket, iChef, Wellness Forever, Suburban Diagnostics, and several tiffin services.
Explaining how YourGuy fits into the vision and expansion plans for LogiNext, Dhruvil Sanghvi, CEO and Co-Founder of LogiNext, says
YourGuy has already acquired a good number of matured and loyal customers in the field of B2B deliveries. Since our new delivery vertical, Sprintr, is also clocking around the same number of deliveries, our volumes (delivery) and network reach will increase by 100 per cent with this acquisition. On top, we will also be selling our technology to YourGuy customers.
After the acquisition, LogiNext’s major task would be to upgrade the fixed expense model of YourGuy to an automated model, allowing users to sign up and start delivering automatically.
Speaking around the same, Alay Jhaveri, Founder of YourGuy, says that through the consolidation, YourGuy is looking to further polish the platform, merging with innovative technology and offering further reformed services.
In September last year, LogiNext raised $10 million in Series A funding from Alibaba backed Paytm for expansion to South-East Asia markets and hiring more talent. As of September last year, the firm was serving close to 50 clients.
Technology players in logistics roughly add up to a $2 billion market in India, bigger than that of South East Asia and the Middle East. Before players like LogiNext entering the segment, the shipment business was more reactive than proactive. The new breed of hyperlocal delivery businesses are now disrupting this segment. Globally, there are companies like ORION software, OnFleet, Bringg, Infor, and JDA software and Elementum which are offering almost the same solutions as LogiNext.
Further, this acquisition makes sense since the software provider is bullishly looking at scale and growth.