Mumbai-based digital freight forwarding startup Freightwalla, on Tuesday (December 11), announced that it has raised $4 Mn in Series A funding from Amplo, FJ Labs and Rogue One Capital among other existing investors such as Kae Capital and Tekton Ventures.
The company will be utilising the funds to enhance its technological capabilities, expand pan-India presence and enrich door-to-door pickup and delivery services across the country.
Sheel Tyle, founder of Amplo told ET that the company is uniquely positioned to bring transparency, shipping accuracy and cost-effective services to importers and exporters, thereby increasing global trade flows to and from India.
Sanjay Bhatia, cofounder of Freightwalla said that the company claims to have partnered with about 450 businesses across industries, including engineering, pharma, manufacturing, homewares, textiles, food, agricultural products among others.
Founded in 2016 by Bhatia, Bharat Thanvi and Punit Java, the startup offers a comprehensive digital platform for businesses to plan, book and manage their international freight shipments online. It gives exporters the flexibility to compare various services based on the aspects such as cost, transit time, route and providers among others.
Moreover, it provides automated workflow management and real-time tracking of shipments, enabling exporters to make smart choices in case of delays in shipment. Last year, the company had raised an undisclosed amount in a seed round from Kae Capital and Tekton Ventures. At that time, the company had planned to use the funds to expand its technology platform, improve its sales reach and increase operational capacity to match demands.
According to IBEF report, India has a huge potential in terms of the market size in the logistics sector. It is poised to touch $215 Bn by 2020, growing at a compound annual growth rate (CAGR) of 10.5%. With 22 Mn people currently employed, the number of people working in this sector is expected to reach 40 Mn by 2020.
But there is still a large market opportunity despite the presence of Delhivery, Blackbuck, Rivigo and others who are each operating in a different niche within the logistics market. Additionally, there are other players also raising funds.
Last month, Gurugram-based digital logistics platform Shipsy raised an undisclosed amount of Pre-Series A funding by Info Edge (India) Ltd. A year before that, Mumbai-based freight logistics startup Cogoport raised an undisclosed amount of Series A funding from Accel Partners.
Flipkart invested in logistics startup Shadowfax as part of a $60 Mn Series D funding round as the ecommerce giant looks to improve its hyperlocal penetration using Shadowfax’s network which have delivered sustainable results from its existing partnership. Eight Roads Ventures, Nokia Growth Partners, Qualcomm Ventures, Mirae Asset Naver Fund and IFC also invested in the company.