[Tech30] With Reliance Jio, Flipkart, Udaan as clients, startup Edgistify is digitising logistics and supply chain
With the boom of ecommerce, the logistics business is finding its place in the sun. With India spending 14 percent (about $360 billion) of its total Gross Domestic Product (GDP) on logistics and supply chain, 40 percent of this total cost (approximately $270 to $300 billion) is due to indirect costs and inefficiencies in the supply chain.
The segment is not just fragmented but highly unorganised. With no structure in the parameters used to identify, select or even benchmark warehouses, this has further crippled the industry.
Enter Thane-based startup Edgistify.
The tech platform helps logistic firms design the entire supply chain. Incorporated in 2017, Edgistify is a conjunction of “Edge, Logistics and Simplify,” and its parent company is Optisupply Chain Solution.
The startup facilitates the various stages of supply chain starting from planning to vendor discovery, evaluation and ultimately finalisation.
“We want to be a one-stop solution for our clients, be their extended on-ground arm for logistics procurement with the help of our one-of-a-kind data-driven decision-making platform,” says Kamal Kumawat, Co-founder, Edgistify.
Edgistify’s most important project so far was the Reliance Jio Fibre project. The startup helped Jio finalise warehouses at 75 locations in just 18 days, operations in four locations, and executed deployment of material handling equipment in more than 140 locations.
Back in 2017, when the Goods and Service Taxes (GST) was introduced and it became the talk of the town, Kamal, who was working in the tech team of Target Corporation met his friend Umang Shukla, 25, in Bengaluru.
Kamal and Umang had met each other in Kota where they were taking coaching classes for IIT-JEE. Kamal went on to crack IIT Bombay and Umang is a graduate from IIT Kanpur.
“We discussed the proposition of working in the logistics sector and reached out to my family friend Antim Suman, 28, who was convinced about the idea,” says 26-year-old Kamal.
After further research, the trio discovered gaps in the industry that could be solved using technology.
“We believe in a first principle philosophy, and our approach from the very first day was to keep a fresh perspective of the industry and create a streamlined ecosystem for logistics and supply chain,” says Kamal.
The idea of Edgistify was thus born in June 2016. In order to validate their data, Umang, Kamal and Antim reached out to more than 300 supply chain heads. They received 50 requests and thus, the startup was incorporated in 2017.
Team of seasoned entrepreneurs
The founding team of Edgistify have all been entrepreneurs before. Kamal was previously co-founder of Dealwithus, a cashback portal, and Freezrealty, a B2B social media startup for people working in the real estate sector.
Antim is a graduate from NIT Surat is the former co-founder of beauty salon services startup Gloyo and Freezrealty. Umang was one of the founding members and lead operations at Pitstop before Edgistify.
Today, Edgistify has more than 50 employees working across the various departments.
Initially bootstrapped for a year, the startup raised angel funds from its mentors in 2017. It raised seed capital in 2018.
“We have got some great mentors backing us like COO of Marico Industries, Jitendra Mahajan and executive director, Fung Strategic Holdings, Rajesh Ranavat,” says Kamal.
Bringing tech in logistics
Warehousing is a critical business decision, and organisations wish to have multiple options before finalising one. Edgistify aims to be a one-stop warehouse identification and leasing solution. Each warehouse listed on its platform is physically verified using more than 80 parameters.
The startup uses predictive analysis techniques of ideal logistics standards for every sector, converting virtual data close to reality. It has so far developed a databank of more than 560 million sq ft of warehousing space.
Edgistify has also designed a unique strategic workflow by segmenting logistics and supply chain into various modules - warehousing infrastructure, warehousing operations, allied services, and transportation.
Edgistify helps design the entire supply chain for any industry. Its flagship products are Warehouse Edge (for warehouse services) and MHE Edge (For on-call as well as long-term Material Handling Equipment requirements).
“Our product offers a holistic view of the entire logistics operation for our customers by parameterising data using a SaaS-based platform that utilises data driven decision making,” says Kamal.
Edgistify works on a SaaS (Software as a Service) model. It has a B2B subscription-based model for platform use, and additional charges for every transaction. Customers or companies need to pay yearly subscription fees to access the platform.
For every warehouse deal, the startup receives a flat five percent of the entire lease amount, and for every material handling equipment, the startup receives a 20 percent margin for the entire lease amount. “We started our subscription model in September and nine companies have already taken our annual subscriptions,” Kamal says.
Currently, Edgistify has 25 B2B revenue generating clients.
“We are working with 200-plus active requirements from more than 50 B2B clients,” he adds.
Its major clients include Reliance Jio, Britannia, Marico, Shopkirana, Flipkart, Udaan and Pidilite.
The key focus has been developing the IP. “Despite not hiring a sales team, we crossed $400,000 in the last fiscal year. This time we are expecting $2 million,” Kamal says.
Market overview and future plans
According to a study by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), the logistics market in India is expected to grow to $307 billion by 2020, recording a CAGR of 16 percent on an average.
Edgistify is more like a combination of DHL, BCG and Blackstone. The founders believe that from the product’s standpoint, they have no competition. However, there are many organised and unorganised players in the market.
“Our proposition is unique and there are no other players in the market offering what we are. Our IP of warehouse data is helping us provide benchmarking of all leased warehouses to our customers,” says Kamal.
The startup is in talks with a few funds and would be closing a round soon.
(Edited by Suruchi Kapur Gomes)
YourStory’s Tech30 companies list is an annual selection of 30 carefully curated and disruptive tech-based startups that we believe will shape the new narrative for India and the world. To get a complete overview of the 2019 Tech30 companies list, download the Tech30 Report here.