Rivigo also said it has relaunched the National Freight Index (NFI) to bring pricing transparency in freight rates
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Trucking logistics firm Rivigo plans to raise $50-100 million in a pre-IPO (initial public offering) round in 2022, and then take it public in 2024, said a top executive. The firm in the last two years pivoted from an asset heavy to an asset light model, to achieve scalability and reduce losses. Launched in 2014, Gurugram-based Rivigo has a ‘relay trucking’ model, under which a truck driver hands over the vehicle to another driver at a designated pit stop, thereby ensuring that the truck is not idle at any point during the journey. Rivigo becamethe eighth Indian startup to become a unicorn — valued a billion dollars or more — in 2019, after it raised $4.9 million from a South Korean fund, KB Platform Fund. “As we finish this transition, we hope that we will be in a steadier shape soon. We will do a pre-IPO round this year and then take the company public in 18-24 months. While we were heavily loss-making pre-covid, as we pivoted to an asset light model, now we are moving towards more sustainable cashflows," Deepak Garg, CEO and founder of Rivigo said in an interview. At the highest peak, we owned about 3000 trucks, now we own and operate about 1000 trucks, he said. While Rivigo started with a unique business model and performed well, it hit a roadblock when it came to scalability as it became asset heavy. Rivigo also said it has relaunched the National Freight Index (NFI) to bring pricing transparency in freight rates. It relaunched the NFI this week after over two years, to publish daily rates for container trucks, which will ensure transparency in the road-freight marketplace. The NFI, which is tech-driven, will serve the objective of providing easy access to daily freight prices for truck owners, transporters, and other stakeholders in the sector and further establish trust and transparency in the highly fragmented logistics and supply chain market. NFI is an open-source data portal based on a proprietary algorithm that collects inputs from multiple data sources to give out the most accurate daily rates. “We are optimistic about creating a platform for fleet owners and transporters, which will enable the growth of the logistics sector. Currently, we are at a stage where the growth of the economy is creating a balance between the supply and demand in the market, which will confidently lead to sustainable freight pricing and profitability for small fleet owners and road freight operations," said Garg said. “By reintroducing our National Freight Index, we want to empower small freight owners, transporters, advisors, consultants, and the market at large, which relies on this data actively. Going forward, we plan to launch the National Freight Forum, a collaborative platform for stakeholders of the logistics industry," he added.