At a time when logistics is one of the biggest challenges for the businesses that are actually operational especially those in essential services, Mumbai-based Porter has secured fresh funding in the hope of taking a lead with logistics and transport solutions in high demand. The logistics startup has raised INR 140 Cr from Lightstone.
According to the ministry of corporate affairs (MCA) filings accessed by Inc42, Porter secured the funds from the Lightstone Global Fund. As part of the transaction, Porter has issued 5,48,190 Series D shares to the venture capital firm. The price per share stood at INR 2,540 with a nominal value of INR 100.
Founded in 2014 by IIT alumni Pranav Goel, Uttam Digga and Vikas Chaudhary, Porter aims to offer economical, efficient and reliable logistics solutions to its customers. The startup does so by leveraging technology in the supply chain and empowering partnered drivers. The company employs more than 300 individuals.
The startup’s model allows delivery partners enjoy flexible working hours, increase earnings and achieve effective work-life balance by choosing how many deliveries they can take on, along with perks such as discounted insurance and fuel costs. So far, Porter claims to have facilitated over 3.5 Mn deliveries.
In February 2018, Mahindra Group-owned logistics marketplace SmartShift had merged operations with Porter. For this arrangement, Mahindra had invested $10 Mn in Porter. Prior to this, Porter had raised $5.5Mn in Series A round of funding from Sequoia Capital, Kae Capital and other investors in 2015.
India’s logistics sector is expected to touch the valuation of $215 Bn by 2020. In this space, Porter competes with companies such as Blackbuck, Delhivery, Locus, Locanix, ElasticRun, and 4tigo Network Logistics.
According to DataLabs by Inc42, between 2014 and H1 of 2019, logistics startups in India have raised over $2.05 Bn funding across 150 deals. Even after the first half of 2019, startups in the logistics sector have continued to attract investors.
In November 2019, Bengaluru-headquartered logistics startup BlackBuck has raised INR 56 Cr in a mixed round of equity and debt funding from Trifecta Venture while Gurugram-based logistics startup Rivigo started off 2020 with a fresh round of $23.4 Mn Series F funding from existing investors and venture debt firm Trifecta Capital.
Meanwhile, Gurugram-headquartered artificial intelligence (AI)-driven logistics platform, fleetx.io had also raised $2.8 Mn with participation from VCs and angel investors. Also, Chennai-based logistics and supply chain startup Pando raised $9 Mn (INR 63.8 Cr) in funding led by Chiratae Ventures alongside existing investor Nexus Venture Partners.