Capital concerns force Pickingo to shut shop1 min read . Updated: 06 Nov 2015, 09:14 AM IST
Move by the logistics service provider signals stress in a segment that has seen 20 new start-ups in the past 10 months
Bengaluru: Hyperlocal logistics service provider Pickingo Logixpress Pvt. Ltd is closing down its operations as it struggles to raise capital, signalling stress in a segment that has seen 20 new start-ups in the past 10 months, said two people aware of the development.
Pickingo, which raised $1.3 million from Orios Venture Partners and angel investor Zishaan Hayath in August, used to handle hyperlocal delivery for restaurants, groceries and pharmacies as well as reverse logistics (handling of returns) for e-commerce companies.
According to the two people cited above, the Gurgaon-based firm’s cross-town rival Shadowfax Technologies Pvt. Ltd is close to taking over the reverse logistics part of the business. Another business-to-business (B2B) delivery start-up Grab (Grab a Grub Services Pvt. Ltd) will take over the hyperlocal delivery business in Bengaluru and Mumbai.
Shadowfax and Grab will also absorb the existing teams in these verticals, said the two people, asking not to be identified by name.
However, Piyush Sharma, one of the co-founders of Pickingo, and Abhishek Bansal, who co-founded Shadowfax in April 2015 along with Vaibhav Khandelwal, denied the development.
Pickingo was founded in 2014 by Rahul Gill, Piyush Sharma, Rishav Papneja and Siddharth Maheshwari. According to one of the two people cited above, the co-founders will be absorbed into different ventures promoted by Orios Venture Partners.
To begin with, Rahul Gill will join Ziffi’s senior management team, said the peson cited above. Mint could not ascertain where the other co-founders are headed.
“Shadowfax will keep the reverse logistics piece alive. That is the only part of the business that is profitable," the same person said.
“The formalities will be completed in the next five to six days."
Pickingo had run into trouble after talks over a possible fund raising with SAIF Partners fell through recently. The company was also in talks with restaurant discovery platform Zomato (Zomato Media Pvt. Ltd) to raise $1 million, but that did not materialise as well.
Consequently, Pickingo shut down its operations in Bengaluru two weeks ago and in Mumbai last week.
While there are more than 20 start-ups in the hyperlocal B2B logistics space, barring Roadrunnr and Shadowfax, none of them have managed to raise significant capital.
Over the past month, SpoonJoy, a Bengaluru-based food ordering app, shut operations in Delhi, while Dazo, a TinyOwl-styled app, said it would wind up operations.