SUMMARY
The acquisition will strengthen COGOS’ platform and enable it to meet the demand for city logistics
Porter has divested its FMCG modern trade business to realign with its business priorities and strengthen focus on on-spot demand services and technology amelioration
Post this acquisition, COGOS will have FMCG vertical operations in Delhi, Mumbai, Bengaluru, Pune, Chennai, Kolkata, Ahmedabad, and Hyderabad
Bengaluru-based COGOS Technologies has acquired logistics startup porter
’s FMCG modern trade business for an undisclosed amount.
It said the acquisition will strengthen COGOS’ platform and enable it to meet the demand for city logistics. As part of the deal, Porter’s acquired subsidiary’s workforce, customer base and vendors will be moving to COGOS.
COGOS spokesperson told Inc42 that the acquisition will help COGOS to diversify its FMCG logistics business to other cities. It already has a presence in Tier-2 and 3 cities where it helps quick commerce layers in making deliveries on time.
Porter has divested its FMCG modern trade business to realign with its business priorities and strengthen focus on on-spot demand services and technology amelioration, according to the statement.
“With this investment, we are looking forward to organising and optimising the supply chain of the sector with our state-of-the-art tech platform and advanced delivery system,” said Prasad Sreeram, cofounder and CEO of COGOS.
Founded in 2016, COGOS aims to increase its fleet to 50K vehicles so as to meet the current demand. Post this acquisition, it will run FMCG vertical operations in Delhi, Mumbai, Bengaluru, Pune, Chennai, Kolkata, Ahmedabad, and Hyderabad.
COGOS will also expand its FMCG operations to more than 300 cities where it is already operating.
“During the COVID pandemic, we started multiple lines of business including modern trade. After due deliberations, we decided to focus on our core business and found an alliance with COGOS Technologies for the continuity of modern trade business. We are positive that with COGOS’ capabilities and expertise in this segment, the business will scale to new heights,” said Pankaj Shroff, CFO at Porter.
Founded in 2014 by Pranav Goel, Uttam Digga and Vikas Chaudhary, Porter is said to have offered inter-city logistics services to more than 80 Lakh customers across 15 Indian cities.
According to Porter, it has launched various verticals including an on-demand marketplace for LCVs and bikes, Porter for Enterprise and Packers & Movers. It is currently looking to expand its base by creating new use cases for these business verticals. It is also planning to expand to 35 Tier-2 and 3 cities of India by 2023.
Earlier this year, it announced an ESOP plan worth $5 Mn for its current as well as former employees in a bid to retain and attract talent.
According to RedSeer’s report, India’s road logistics market is likely to surpass the $330 Bn mark by 2025. Meanwhile, the country’s intra-city logistics market holds nearly 13% of the total logistics market.
