[Funding Alert] LoadShare raises Rs 100 Cr in Series B round to 'deepen' its essentials supply chain network
B2C logistics startupsaid it has raised Rs 100 crore in a series B investment round led by BEENEXT, after raising Rs 15 crore as part of the same round, last month.
CDC Group also participated in the round, along with existing investors such as Matrix Partners India, Stellaris Venture Partners, and venture debt firm.
The startup aims to use the funds to deepen its ‘essentials’ supply chain network. It also plans to expand its delivery network, and foray into sectors such as pharmaceuticals, FMCG and grocery for delivery of essentials.
“The investment is timely as it helps us deepen our engagement with clients and continue building capabilities through investments in technology, attracting the best talent, geographic expansion and undertaking new initiatives (especially, hyperlocal delivery and movement of essentials)," said Raghu Talluri, CEO of LoadShare, in a press statement shared by Matrix India Partners.
"Over the past 12 months, we have been able to create over 3000 new jobs across our partner ecosystem, and we will continue focusing on this aspect as we grow further,” he added.
Founded in 2017, LoadShare has operations in over 18 states and over 400 towns. The startup is particularly focussed on the eastern states in India.
Over the years, the company has managed to build on its expertise in ecommerce logistics to serve clients in non-ecommerce businesses (CPG, industrials), in areas such as regional trucking, and distributor-to-store logistics.
"LoadShare is operating in a deep $20 billion addressable market, which is undergoing a fundamental change. Its execution across different logistics segments, enabled by their tech-enabled marketplace model working with SMEs makes it exciting for us to partner with them," said Teruhide Sato, Founding and Managing Partner at BEENEXT, regarding the fundraise.
Logistics - that comprises road transportation and trucking - is a $120 billion industry in India. Close to 70 percent of the total logistics operations in the country happen on the roads, nearly 40 lakh trucks.
The coronavirus pandemic has hit the demand and business of close to 90 percent of these trucks. Essential items which are moving today only make up about 15 percent to 20 percent of the total industry.
"LoadShare is playing a very significant role in ensuring supply chain continuity in these uncertain times. With their unique technology-led model of working with local SME’s, they provide customers fantastic flexibility and reach at lower costs. These are important differentiators, especially in tier II, III, and IV cities - the next big growth market for most companies," said Rajinder Balaraman, Director, Matrix India.
Services offered by the Bengaluru-based startup range from first-mile, line-haul, and last-mile deliveries, to modular logistics software solution. It is primarily focussed on business-to-consumer (B2C) logistics, and has plans to enter the B2B logistics space.