Gurugram-based supply chain planning and logistics startup 3SC has raised $15 Mn in Series B round led by GEF Capital’s South Asia Fund. The startup will utilise the fresh capital to scale its domestic business and strengthen its foothold across Europe and Southeast Asia. It will also improve its existing software and analytics through both organic and inorganic routes.
Founded by Lalit Das and Sarita Das in 2012, 3SC provides logistics services and supply chain analytics solutions to companies across pharma, FMCG, ecommerce, and industrial industries. The startup offers solutions in planning, distribution, control tower, and 4PL, leveraging AI/ML.
A 4PL is a fourth-party logistics provider that takes third-party logistics a step further by looking after resources, technology, and infrastructure. A 4PL service provider will even provide supply chain solutions for businesses.
The logistics startup boasts of having a higher customer base in both India and Europe.
Das said that the industry tailwinds towards digitisation and their capitalised balance sheet, will help 3SC grow 2-3X in the next couple of years.
Commenting on the investment, Raj Pai, managing partner at GEF Capital Partners, said, “With the onset of Covid, the global SCM industry is ripe for modernization and 3SC is uniquely positioned as an end-to-end Execution plus Analytics service provider suited for customers of all scale and size.”
The logistics market, after initial hiccups due to the imposition of the lockdown during the first Covid wave, saw a gradual growth. As people remained indoors to curb the spread of the virus, demand for home delivery services skyrocketed. During the lockdowns, we saw several startups pivot their operations to deliver groceries showing a high demand for essential services.
According to a Technavio report, India’s third-party logistics is expected to grow by $10.74 Bn progressing at a CAGR of almost 8% during 2021-2025
According to ReportLinker’s report, manufacturing in India, which will contribute 25%-30% of the country’s GDP by 2025 will drive the warehousing segment of India. The logistics market in the country is expected to grow at a CAGR of 10.5% between 2019-2025. Growing demand for ecommerce services is expected to spur the growth of logistics services.
Apart from major logistics players operating in the country such as DHL and Bluedart, startups are attracting investors’ interest. India already houses three logistics startups — Delhivery, Xpressbees and BlackBuck which have achieved unicorn status.