Photo credit: Simply CVR
When it became clear that ecommerce startups could not be profitable in India until the country solved its infrastructure woes, the logistics sector rejoiced. According to data from venture capital intelligence firm Tracxn, funding money toward logistics startups jumped from US$69.3 million to US$617.7 million between 2014 and 2015.
Because the problem was so complicated, startups had plenty to focus on. In 2015, logistics trends included startups that provided powerful backend technology, hyperlocal delivery services, and truck aggregators.
Here are the ten logistics startups that received the most funding in India. Keep in mind, this list does not include the equally intriguing and worthy-of-mention startups that are working on India’s food and grocery delivery ecosystem. We’ll save those for another time.
Ecom Express: US$133,000,000
Ecom Express provides end-to-end logistics solutions for ecommerce sites, meaning it takes care of everything that happens from the moment a customer orders something online until it’s delivered at her home. This includes collecting cash-on-delivery and managing returns.
“We don’t outsource to anyone and keep our supply chain tight,” explained founder T.A. Krishnan to Tech in Asia in an earlier interview. “We’re a one-stop-shop solution.”
After its initial round of US$16.5 million in September 2014, Ecom Express received US$133 million in private equity funding from Warburg Pincus in June 2015.
Delhivery: US$85,000,000
Like Ecom Express, Delhivery provides end-to-end logistics solutions to its customers. Instead of housing these services within its company, however, it outsources the work and spends most of its energy on strengthening its backend technology.
Founder Sahil Barua explained to Tech in Asia in an earlier interview that his strategy with Delhivery is to create a “flexible stack” of companies that will help connect the country’s fragmented logistics ecosystem. “We’re backing players that are solving big problems and looking to find more,” he explained.
In May, Delhivery raised a series D round of US$85 million led by Tiger Global Management. Till date, the startup has raised a total of US$127.5 million from investors like Nexus Venture Partners and Times Internet.
Its investments include US$5 million in first mile packaging and pickup company Parcelled.in and US$7 million in last mile hyperlocal delivery service Opinio.
BlackBuck: US$30,000,000
BlackBuck uses its technology to aggregate freight to transport goods between cities. Conventionally, freight includes everything from trucks to trains to ships, but always involves large goods.
Flipkart and Accel have invested twice in the company in the past year and participated in both its US$25 million series B round two weeks ago and an earlier US$5 million round in June.
Rivigo: US$30,000,000
Rivigo is an inter-city transportation startup with a unique relay model. Drivers are placed strategically across India and each move goods for an allotted leg of a route until it reaches its destination.
“The traditional trucking model means that a driver will spend 25 days a month on the road,” founder Deepak Garg told Tech in Asia. “There are also more than 300 million truck drivers in the country. We looked at it as basic data and figured out a model that would help us get these drivers back to their families by the next day as well as take care of the massive supply problem.” According to Deepak, the focus on drivers’ livelihoods will ensure a more sustainable and efficient trucking model.
RoadRunnr: US$21,000,000
Gojavas: US$20,000,000
QikPod: US$9,000,000
Shadowfax: US$8,800,000
Opinio: US$8,300,000
The Porter: US$6,500,000
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