Logistics start-up Rivigo’s FY17 loss widens to Rs137 crore
New Delhi: Logistics start-up Rivigo Services Pvt. Ltd’s annual loss widened to Rs137.1 crore in the year ended 31 March from a little over Rs5 crore in the previous year, according to company filings sourced from Tofler.
Revenue rose 170% to Rs401.8 crore in 2016-17, from Rs148.6 crore in the previous year. Total expenditure more than tripled to Rs525.3 crore.
Other expenses also tripled to Rs388.4 crore, while finance costs increased 240% to Rs23.3 crore. The company also increased its workforce, given the three-fold rise in employee benefits, to Rs74.2 crore. Rivigo did not respond to Mint’s email on Sunday seeking comments. Calls and messages to co-founder Gazal Kalra went unanswered.
The company raised $75 million in a Series C investment from private equity firm Warburg Pincus in November last year. Warburg has also backed Ecom Express.
Started in 2014 by former McKinsey & Co. consultant Deepak Garg, Rivigo is an inter-city long-haul logistics service provider. It owns and operates a fleet of about 2,500 trucks fitted with technology to track location, fuel and other metrics.
The firm serves pharmaceutical, automobile, apparel, and the e-commerce industries, among others, and its clients include Abbott, Hero MotorCorp, ITC and Lupin.
Buying trucks is one of the biggest expenses for the company. In August, Rivigo agreed to buy 500 trucks from Ashok Leyland for Rs120 crore.
What distinguishes Rivigo from other freight operators is that it employs what it calls a ‘driver relay’ model, a departure from the traditional practice of one driver taking the load from point A to point B. Rivigo employs multiple drivers on any route and one driver is replaced by another, who would typically drive for four-five hours.
Not only does it get more drivers to sign up, the relay model, Rivigo claims, reduces transit times by 50-70%. In its three-year operations, the firm has created over 70 such pit stops across major routes.
Rivigo, which represents the new breed of logistics providers alongside Delhivery and Ecom Express, has raised over $100 million in funding so far. It also raised Rs100 crore in debt from a bunch of banks this March.
Rivigo also featured among the top 40 international emerging brands alongside Flipkart, in a list put together by Interbrand, a brand consultancy owned by marketing and communications conglomerate Omnicom Group.
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