Celcius Logistics Bags INR 250 Cr To Expand Presence In Non-Metro Cities

Cold-chain logistics provider Celcius Logistics has raised INR 250 Cr in its Series B funding round, which was a mix of equity and debt.

The equity round, which was a mix of primary and secondary transactions, was co-led by Eurazeo and Omnivore, with participation from IvyCap Ventures. The debt component of the round saw participation from Trifecta Capital, Lighthouse Canton, BlackSoil, UCIC and GetVantage. 

Celcius founder and CEO Swarup Bose told Inc42 that the funding round had equal debt and equity components. The announcement came four months after Inc42 reported that the startup was in advanced discussions with investors to raise around INR 125 Cr (about $14.5 Mn) in its Series B round. 

Celcius plans to use the debt to meet its working capital needs for the existing business, while the equity funding will be used to expand its presence in tier III & IV markets and enter less-penetrated industries like pharmaceuticals. 

Founded in 2020 by Bose, Rajneesh Raman, and Arbind Jain, Celcius offers a digital platform that connects shippers and transporters and offers solutions for temperature-controlled transportation and storage. The platform centralises bookings and helps collate all the data in a single system.

Its cold-chain logistics solutions are used across industries like quick commerce, ecommerce, agriculture and healthcare, with a focus on perishables like pharmaceuticals and fresh produce. 

As of now, the startup has a network of over 150 cold storage and distribution facilities, serving demand in about 600 pincodes in the country. On the back of fresh fundraise, Celcius plans to establish its presence in 1,000 pincodes by the end of 2025. 

Prior to this funding round, Celcius last raised INR 40 Cr ($4.7 Mn) in pre-Series B funding in May last year. 

Why Non-Metros Are The Next Destination For Celcius

On Celcius’ focus on non-metro markets, Bose said that there is a growing client demand across industries for such markets. 

“Traditionally, non-metro regions lacked adequate cold storage and transportation infrastructure. This made it costly and inefficient for businesses to stock or transport perishable goods, often discouraging expansion into such locations. In recent times, we have seen an extremely heavy demand from customers for our service in these regions,” he said.  

Talking about Celcius’ strategy for these markets, Bose said that the startup establishes distribution hubs by forging partnerships with local entrepreneurs to create cold-storage facilities, fleet providers and manpower suppliers.

As a result of these partnerships, Bose claimed that Celcius operates on an asset-light model. A majority of the startup’s investments go towards training blue-collared workforce to operate specifically in cold chambers or operate last-mile delivery vehicles with refrigeration units.

Without disclosing numbers, Bose claimed that Celcius saw its top line grow 2.5X in FY25, with its bottom line improving around 10-12%. However, it is pertinent to note that Celcius is yet to file its FY24 numbers with the MCA.

The startup’s expansion into the non-metro cities comes at a time when top quick commerce players are focussing aggressively on cracking this market. Industry leaders Blinkit, Zepto and Swiggy Instamart have expanded their services in non-metro markets like Udaipur, Warangal, Bathinda, Haridwar, and Vijayawada in recent months. 

Celsius counts the likes of Zepto and Zomato as its clients. Speaking on the quick commerce frenzy, Bose said that the entry of these players often attracts interest from other industries like pharma and dairy, creating a multiplier effect in market development.