Rivigo raises $30 million from SAIF Partners, others1 min read . Updated: 18 Dec 2015, 11:43 AM IST
Rivigo plans to use the funds to achieve its target to grow 10 times in the next one year and also to expand its technology team
New Delhi: Gurgaon-based TrucksFirst Services Pvt. Ltd, which operates logistics services firm Rivigo, has raised $30 million in a Series B round from existing investor venture capital firm SAIF Partners with equity and debt financing, the company said in a statement on Thursday.
The company did not share the names of other investors.
It would use the fund to scale the operations. The target is to grow 10 times in the next one year. It would also expand its technology team.
It last raised close to $10 million from SAIF Partners in May. Previous to that, the angel round of the company saw investors like Singapore Post.
The company was founded in 2014 by Deepak Garg and Gazal Kalra. While Garg is an alumnus of Indian Institute of Technology (IIT), Kanpur, Kalra graduated from Stanford Graduate School of Business, Stanford University, US. Both are former McKinsey and Co. employees.
It claims to reduce 50% of the delivery time to clients and works with companies across e-commerce, fast moving consumer goods, automobile, pharmaceuticals and cold chain space.
Its operations are pan-India, including the north-east and eastern parts of the country.
“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 goods 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, SAIF Partners India.
The company competes with online freight services aggregator BlackBuck which, earlier this month, raised $25 million in a Series B funding round from Tiger Global Management, Russian billionaire Yuri Milner’s personal investment firm Apoletto, Accel Partners and Flipkart.
Loji and Fuyokache are two other well-funded start-ups in China. Other companies such as Trucker Path, Cargomatic and Transfix in the US have together mopped up about $46.5 million in institutional funding.
According to Tracxn, there are about 58 start-ups in this segment in India.
Industry experts say that though the domestic road freight industry is a $40-50 billion segment, it is fraught with challenges, especially since market dynamics vary according to locations and may impact consolidation of load. Besides, there are multiple stakeholders, such as truck owners, brokers, logistics companies and customers.