Green logistics startup EVIFY offers first, mid and last-mile solutions to BigBasket, Swiggy, others
Devrishi Arrora, Pragya Mittal, and her husband, Vineet Mittal, have been friends for over 10 years. For five years of those, Devrishi provided logistics services for pan-India shipping of solar panels manufactured by Vineet and Pragya's company, Navitas Green Solutions Pvt. Ltd.
The trio zeroed in on a new business plan amid the lockdown as the logistics industry saw unprecedented growth, with online deliveries becoming routine in every household.
Taking it ahead, Pragya and Devrishi felt a need to accelerate the creation of a national infrastructure for green, sustainable logistics services. In July 2021, they launched Surat-based green logistics startup.
The B2B startup is a “full-stack, tech-enabled green logistics company that provides end-to-end first, mid, and last-mile logistics solutions.
Presently operational in Surat, EVIFY combines technology solutions and logistics infrastructure to offer various services to delivery players in FMCG, ecommerce, and other industries keen to replace traditional vehicles with EV fleets.
What does it solve?
EVIFY’s logistics solutions give businesses access to full fleet management, driver management, battery management, and technology solutions such as telematics. It also helps with financing and loan management, credit risk analysis, and key fleet insights.
“Our tech platform provides customers with the flexibility and convenience of selecting transportation and people that are the best fit for their freight requirements. The integrated battery management system (BMS) and sensors in the vehicle capture all data on the battery's health, including the charge ratio, time spent at each authorised spot, geo-fencing, driver riding patterns, and the location of the driver,” says Devrishi, Founder and CEO of EVIFY.
The data is transmitted in real-time, enabling any necessary adjustments to the products/services and enhancement of quality.
Eveeto is the logistics solutions wing of EVIFY and focuses on processes about EV acquisition, vehicle maintenance, and delegation of demand following client needs. Eveeto also focuses on hiring, taking care of EV drivers, and ensuring all deliveries happen on time.
EVIFY, which is presently focusing on Tier II India, prioritises environmental sustainability and economical services.
“We intend to use only green operational and productivity models. In addition to transportation, we also provide personnel services (vehicles and drivers) to customers,” states Devrishi.
The startup recently signed an agreement with Hero Electric to purchase 1,000+ electric scooters over the next two years.
“We aim to bring about a revolution in the Indian logistics sector to tackle the global warming issue. EVIFY intends to put solar panels on the rooftops of its warehouses, offices, and parking lots to reduce their carbon footprint,” says Pragya, Co-founder and Director of EVIFY.
EVIFY was chosen as one of 500 businesses for the Climate Tech 100, a list of the top 100 climate tech businesses in India based on research and analysis by Energy Alternatives India (EAI).
How does the product work?
Devrishi says several logistics companies are operating in the market, but none focuses on the environmental impact.
“EVIFY considers how it can keep its operations value-based and green to reduce energy waste and carbon emissions.”
The logistics startup has made huge investments to develop a full-stack platform that offers end various insights into their fleets. It performs R&D to enhance the performance of its in-house batteries by using smart BMS devices to collect crucial data.
The company has its own application and dashboard to track drivers and their performances.
To reduce range anxiety and improve overall fleet performance, EVIFY will continue to install smart charging points at all prime locations in cities where it is operational.
“We are planning another feature where drivers can only start the vehicle if the QR code on the vehicle is scanned through the EVIFY’s Rider App. EVIFY will continue to ramp up all its offerings by continuously adding more features to help clients and the backend team,” Devrishi says.
Market opportunities and traction
According to a report by RedSeer, the last-mile delivery market in India will reach $6-7 billion by 2024.
NITI Aayog suggests that increased EV adoption may reduce logistics costs in India and might drop by at least 4% of India's GDP.
EVIFY is gaining traction as it lets companies reduce operating costs, increase profitability, and cut overall carbon emissions.
“As a green logistics company, EVIFY wants to electrify India's first-mid-last mile deliveries by providing one-stop logistics solutions. Be it offering EVs, charging points, delivery personnel, or green warehouses, we aim to revolutionise the entire sector,” Pragya says.
At present, the startup has a team size of 80-90 members, including its driver fleet.
“EVIFY is on track to deliver more than 1.5 million packages by the end of this year. The same with traditional logistics would have resulted in up to 1,392 tonnes of carbon emissions. EVIFY’s EV fleet means the deliveries result in 262 tonnes of carbon emissions,” Devrishi says.
Business model and revenue
EVIFY has a B2B model and works on a pay-per-delivery model. It plans to start an EV rental service model too in the coming weeks.
Devrishi explains, “The leasing model is useful for companies and startups trying to reduce their asset inventory. It helps us to have someone willing to take these assets on their books while we lease out these vehicles. Investors gain from depreciation, GST credits, and monthly rentals, among other things.”
EVIFY can avoid the high capex expenditure associated with investing in these vehicles and reinvest those funds in overall operations.
“This also makes it easier for companies and startups to expand initially,” Devrishi says.
Now, the startup has collaborated with companies like BigBasket, Swiggy, and Ecom Express. Soon, it will also start working with Flipkart, Delhivery, Porter, and Shadowfax.
The revenue model focuses on dedicated riders on fixed monthly revenue and pay per delivery and rental. So far, it has achieved 88,000+ green deliveries across 485,000+ km.
“EVIFY is a young company that will complete its first year of operations in September. However, it has been witnessing steady growth month on month. We are targeting an MRR of $250,000 or $3 million ARR by the end of March,” Devrishi says.
Funding and the way ahead
Started as a bootstrapped company with an investment of $70,000, the logistics firm in August 2022 raised about $100,000, led by Gaurav Singhvi of We Founder Circle and other investors, including Gaurav Juneja and Saurabh Agarwal.
It plans to acquire 2,000+ EVs by March 2023 and grow its presence in Ahmedabad, Vadodara, and Rajkot.
Rising demand has led the founders to consider raising additional funds in about two months.
EVIFY is also looking to hire more drivers for its partners. The company targets to hire 2,000+ drivers, at least 15-20% of them women, by March 2023.
If the current demand is sustained, it expects to scale this number up to 10,000 drivers in the next two years.
EVIFY competes with players like Zypp Electric, Loadexx, Lightning Logistics, and Moeving, among others.
“Our primary differentiators are availability in Tier II and III locations and analytics using cutting-edge technology,” Devrishi says.