The Mumbai-based logistics analytics startup, LogiNext Solutions has raised seed funding of INR 3 Cr from Indian Angel Network (IAN). It offers advanced analytics to improve logistics and supply chain in an organisation.
As per the deal terms, Sanjay Mehta, Lead Investor and Member of IAN, will join the LogiNext board. Loginext uses Internet of Things (IoT) and Big Data to optimise delivery networks, internal operations and other logistics services.
Speaking on this development, Dhruvil Sanghvi, Co-founder of LogiNext said, “India’s logistics sector is poised for accelerated growth and technological disruption with favourable environment led by GDP revival, ramp up in transport infrastructure, ecommerce penetration and the impending GST implementation. This has opened the floodgates of opportunities across the spectrum for companies dealing in the logistics space.”
LogiNext employs smart technology to help the companies to avoid postponements, incorporate transparency, and perform real-time tracking to get insights about their moving assets, distribution networks and supply chain.
Founded by Dhruvil Sanghvi and Manisha Raisinghani in 2014, both graduates from Carnegie Mellon University. It offers real time tracking and logistics analytics which helps track rail cargoes, trucks and couriers boys, and spot delivery bottlenecks. The startup serves medium and large scale enterprises. Prior to starting this, Dhruvil and Manisha have gained consulting experience at companies such as Deloitte and IBM in the US.
The company claims to have 15 paying clients and is doing pilots for 25 firms, including Flipkart and Snapdeal.
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“With products sold on every other site being more or less similar, ecommerce companies are increasingly focusing on logistics to have control and visibility on their supply chain and deliveries,” said Sanjay Mehta, Lead Investor and Member of IAN.
India’s ecommerce space has grown rapidly in the last few years. Amid this high competition environment, ecommerce firms are aiming to reduce delivery time to enrich customer’s experience.
Let’s have a look at the recent developments in this space –
August 2014- Holisol logistics, a back-end logistic provider to ecommerce players had raised $1.5 Mn in its first venture capital funding led by oil and gas professional Sundeep Bhandari.
September 2014 – Ecom Express, founded by ex-Bluedart had raised INR 75.5 Cr in funding, has started sufficing in the media.
September 2014 – Delhi-based ecommerce logistics firm Delhivery had raised $35 Mn in Series C round of funding led by Multiples Alternate Asset Management.
January 2015 – Hyderabad-based express distribution and supply chain solutions provider, Gati Limited had announced its plans to raise over INR 120 Cr.
March 2015 – US-based online marketplace, Amazon had announced its plan to set up a logistics company in India by the name of “Amazon Transportation Services Private Limited (ATSL).
March 2015 – Snapdeal acquired online order management startup, Unicommerce for an undisclosed amount. Besides, it is also investing about INR 25 Cr. in its wholly owned logistics unit, Vulcan Express Pvt. Ltd.
According to the recent report, logistics sector in India, which is now worth $100 Bn, will be worth $385 Bn by 2015 and the focus should be on creating warehousing facilities, a cold chain and centre of excellence for road transport to sustain the growth.