Mumbai: Holisol Logistics Pvt. Ltd, a Delhi-based logistics service provider to online retailers, announced that it has raised $1.5 million from Sundeep Bhandari, director and chief executive officer of DataVision Software Solutions Pvt. Ltd, a software development and data processing company.

Rahul Dogar, co-founder of Holisol, said over phone that the money raised will be utilized to expand to new cities and business operations.

The company was founded in 2009 with a seed capital of 15 lakh. It provides services to 15 clients, plans to add five more and is looking to touch a turnover of 40 crore by the end of this fiscal year. The logistics solutions the company provides include distribution, packaging, warehousing inventory management and customer delivery.

According to Dogar, the e-commerce logistics market in India is pegged at 3,500-4,000 crore. Start-ups competing with Holisol include Nexus Venture Partners-backed, owned and operated by SSN Logistics Pvt. Ltd, and Lords Freight (India) Pvt. Ltd, a freight forwarding company.

Mahindra Logistics Ltd acquired a majority stake in Lords this month, Mint reported on 19 August. Quickdel Logistics Pvt. Ltd, a Gurgaon-based firm, acquired the logistics arm of, the online fashion and lifestyle retailer, in 2013.