Rivigo FY18 revenue jumps 77% to ₹721 crore

Logistics startup Rivigo Service Pvt. Ltd's net revenue jumped 77% to ₹721 crore in the year ended March 2018 (FY18) even as losses widened, according to company fillings sourced from business intelligence platform Tofler.

Rivigo, India's most valuable logistics provider, reported revenue of ₹408 crore in the previous financial year. The Gurugram-based company's losses doubled from ₹112 crore to ₹245 crore in FY18.

The total expenditure was reported at ₹966 crore, up from ₹527 crore last financial year. In 2016-17, the company's revenue rose by 170% to ₹408 crore.

Rivigo is currently valued at ₹654.82 crore (estimated $920 million), according to documents filed with the Registrar of Companies.

E-mail and calls to Rivigo didn't elicit response.

The company is also in talks to raise up to $400 million in fresh funding to expand it's trucking fleet and new clients, Mint had reported in September. Rivigo is also seeking a sharp jump in valuation after the company was valued at the previous round.

Rivigo has raised $170 million in debt and equity from SAIF Partners, Warburg Pincus and Trifecta Capital among others. It raised $50 million in series-D in December 2017.

Founded in 2014, by former McKinsey and Co. consultants Deepak Garg and Gazal Kalra, Rivigo deploys a driver relay model to deliver products for companies. It operates in varied sectors including e-commerce, retail, auto and FMCG among others.

Under the model, several truck drivers are aligned to deliver a single shipment. A single driver takes a shipment from designated point to another within few hours and relays the truck to another driver.

According to the company, the relay model helps in curbing abnormal working hours for truck drivers, who otherwise have terrible working conditions.

Rivigo is based on an asset-heavy model, where it has its own fleet of trucks. While it requires investment, the logistics services provider is able to control the delivery process. It claims to reduce delivery time by 50-70% for customers.

Rivigo competes with well-funded startups such as BlackBuck (Zinka Logistics Solutions Pvt. Ltd) Gati and Fortigo (4tigo Network Logistics Pvt. Ltd).

Blackbuck is also eyeing unicorn status with fresh funding talks to raise $150-$200 million, Mint reported. Fortigo is looking to raise $50 million in additional capital as it enters financial lending.

Rivigo has also entered freight services in the recent past.