Shipsy has raised an undisclosed amount from a group of angel investors
New Delhi: Gurgaon-based Llama Logisol Pvt Ltd, which owns and operates on-demand logistics service provider Shipsy, has raised an undisclosed amount from a group of angel investors led by Dheeraj Jain, partner at Redcliffe Capital, a UK-based hedge fund, a top executive of the company said on Monday.
Others who participated in the funding include India-based wealthy individuals such as Nittin Passi, Ankit Jhunjhunwala and Vishal Chandra. Early stage investor Udaan Angel Partners also took part.
The firm will use the money in team expansion and marketing, said Soham Chokshi, co-founder of Shipsy.
In June another on-demand logistics start-up Parcelled.in raised an angel round from logistics firm Delhivery and Traxcn Labs.
Founded in March by three Indian Institute of Technology (IIT) graduates Chokshi, Dhruv Agrawal and Maharshi Devraj, the company picks, packs and delivers parcels from the doorstep of a customer. It also works with small and medium enterprises and has tied up with almost 50 of them.
It gets close to 20-30% business from individual customers while the rest comes from small and medium enterprises. The start-up does the local delivery of parcels through its own fleet of riders and has partnered with courier service providers for inter city services.
The trio has build an algorithm through which they find the most economical courier service provider for a particular pin code. It also allows users to track the shipment on its app.
So far over 5-10% of its business comes from local deliveries and the rest from inter-city deliveries done through courier partners.
Once the parcel is collected from the customer, it is taken to Shipsy’s warehouse where it is packed. It is then sent for delivery.
The start-up works with over 12 courier partners, including companies such as BlueDart, DTDC and international ones such as UPS and TNT.
It works on a margin basis with these courier service providers, Chokshi said declining to share further details. The cheapest offer Shipsy has on its platform is of flat Rs.50 for a 500 gram parcel to be delivered anywhere across the country.
Every day the company processes 150-200 orders with an average ticket size of Rs.200. It aims to reach 1,000 orders in the next three months.
Currently it has operations in Gurgaon. It now plans to expand to Delhi and Noida by December and hire 30-35 riders. As of now, it has a fleet of close to 15 riders. It also plans to reduce its pick-up time from two hours to 90 minutes.