The firm plans to ramp up operations and expand the technology team to add IoT, automation and data sciences
The B2B logistics sector has become the new ‘must-invest’ segment in India, as large VC investors are pouring millions of dollars into various companies.
The recent spurt in the number of startups in on-demand logistics (B2B as well as B2C) is due to booming e-commerce, led by Tiger Global-backed Flipkart and Alibaba-funded Snapdeal. The existence of millions of SMBs, which are now increasingly going online by setting up their own e-commerce stores, is also prompting entrepreneurs to start logistics companies.
The latest company to join the bandwagon is rivigo, which offers on-demand B2B logistics services to companies in the e-commerce, FMCG, auto, pharma and the cold chain industries. SAIF Partners, a leading VC fund with operations in India and China, provided the funding to the Gurgaon-based startup.
rivigo will use the funds to achieve its target of scaling 10 times over the next 12 months. Says Deepak Garg, Founder and CEO of rivigo, “We’ll be using the proceeds from this round to ramp up our operations. We’ll also be focussing on expanding the technology team to add IoT, automation and data sciences.”
Founded in 2014 as TrucksFirst, rivigo provides logistics services to companies in the e-commerce, FMCG, auto, pharma and the cold chain industries. It claims to have a 24×7 service network, immaculate documentation systems, quick response times and crisis management infrastructure, as well as holistic client servicing.
According to the startup, it is capable of consistently providing over 50 per cent reduction in delivery times to clients, while improving the quality of life of truck drivers.
The logistics platform provides delivery services pan-India, including geographies such as the North East and Eastern parts of India.
“The tech-enabled logistics space in India is robust and has tremendous potential. We also anticipate greater growth for this segment in view of the impending GST (good and services tax) Bill. Rivigo has immense scope to serve the large opportunity space with its unique business model. We were particularly impressed by their smart use of tech and unique operating model that ensures high driver satisfaction, reliability and unprecedented delivery times,” said Deepak Gaur, Managing Director at SAIF India.
Recently, another company, BlackBuck, that helps businesses to move products between various cities raised a whopping US$25 million in Series B investment.
These firms are giving a tough competition to offline players such as Professional Couriers, FedEx, DHL and BlueDart, as retailers are now relying on tech-enabled services for faster delivery and easier documentation.
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