The Competition Commission of India (CCI) has approved the acquisition of Gurugram-based logistics startup Rivigo by Spring Canter Investment Ltd (SCIL) through the subscription of compulsorily convertible preference shares.
SCIL is an investment holding company incorporated under the laws of Mauritius and does not have any physical presence in India. Its shareholders are certain private equity funds managed by Warburg Pincus LLC (Warburg).
Founded in 2014 by Gazal Kalra and Deepak Garg, Rivigo offers pan-India delivery services to ecommerce, pharmaceutical, automobile, cold-chain and fast-moving consumer goods companies. The company said it covers more than 29K pin codes in India.
Rivigo uses an innovative ‘driver relay’ model that enables trucks to cover more distances at a faster pace against the industry average. Its full-stack logistics offering includes relay-led trucking and freight marketplace.
It empowers numerous shippers and fleet operators to optimize their fleet and achieve maximum results and aim to bring an impact across the freight ecosystem by making it fully digital and transparent.
In July 2019, reports had surfaced that Rivigo had laid off nearly 70-100 employees.
At that time, Gazal Kalra, cofounder of Rivigo, attributed the recent attrition to “performance and market dynamics.” However, reports claimed that investors have been pressuring Rivigo to cut costs, move away from an asset-heavy business, and improve its unit economics across all business verticals.
In FY19, the company said that it has added INR 300 Cr to its revenue with a loss of INR 600 Cr. The company was looking to be EBITDA profitable in March 2020.
Rivigo had started off 2020 with a fresh round of Series F funding from existing investors and venture debt firm Trifecta Capital.
In September 2019, the logistics startup had raised about $4.9 Mn funding from a South Korea-based investor KB Global Platform Fund.
With over 2,00,000 verified fleet owners, the company operates via more than 70 pit stops and claims to have completed half-a-million trips to date. Since its inception, Rivigo has raised over $280 Mn across equity and debt rounds from the likes of Warburg, Elevation Capital and Trifecta Capital.