LogiNext CEO on growth of SaaS and the company’s plans to IPO in five years
LogiNext, a software as a service (Saas) firm, is planning for an initial public offering (IPO) in the next five years, Dhruvil Sanghvi, Co-founder and CEO revealed at TechSparks 2021, YourStory's flagship startup-tech event.
“We are very strongly headed towards an IPO. It is not going to happen in the next couple of years as these are still early days. We still have about five years to go,” said Dhruvil, a Carnegie Mellon graduate, a serial entrepreneur, and an investor.
was founded in 2014 by Dhruvil, and IBM’s former senior consultant Manisha Raisinghani. The startup claims to provide a full-stack logistics service including first mile, middle mile, and last mile through its software.
The New York-based firm is currently strengthening its leadership team, building solid processes, and an on-ground team.
“We are building a repeatable engine, which runs on its own. So, it makes our growth more predictable, which capital market investors look for,” Dhruvil says.
According to him, the next decade is dedicated to SaaS. The Indian SaaS industry is expected to grow 5x over the next five years with B2B focused startups to attain unicorn status faster than the B2C ones.
Investments to the tune of $6 billion have been made in Indian SaaS companies so far, with over $4 billion raised in the last three years alone.
LogiNext is planning for an IPO amid a major IPO boom in the Indian startup ecosystem
Additionally, India is in the midst of an IPO boom. The successful listing of SaaS playeron NASDAQ, and ’s IPO has given listing ambitions to many startups.
“In the US, at least 10 SaaS firms have gotten listed in the last 18 months,” says Dhruvil.
According to Dhruvil, logistics in Saas is a “no-brainer business”. “The process when it comes to logistics are very logical businesses and need very basic and fundamental models. They are run in a very people-centric manner,” he added.
This was being done well by older players including Gati and DTDC, and FedEx in the US. But due to the accelerated need for logistics with e-commerce marketplaces, and delivery services, among other services, coming into play Saas became a faster way to integrate first-mile and last-mile delivery services, according to Dhruvil.
“Saas logistics is a cloud-based system and gets very easily integrated with businesses that need such services,” said Dhruvil.
So far, the seven-year-old firm has raised $49.6 million from the likes of Tiger Global Management and Steadview Capital. LogiNext operates in over 50 countries.
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