California-based logistics automation platform LogiNext has raised $39 Mn funding from US-based marquee investors Tiger Global Management and Steadview Capital.
This Series B investment is the transportation automation platform’s third funding round in the last three years, after it raised $ 10Mn in a Series A round led by Paytm and Alibaba in 2016. This brings LogiNext’s total funding amount close to $50 Mn to date, which includes angel investments from Sanjay Mehta, who is the company’s first investor.
LogiNext is planning to use this Series B funding to expand its presence outside India and into New York, London and Sydney. Currently, the company operates in 20 countries across the world and most of its revenue comes from outside India.
LogiNext’s cofounder Dhruvil Sanghvi told Inc42 that 20% of its revenue comes from India, whereas almost 80% comes from other countries it operates in. Therefore, LogiNext will be using the funding to penetrate deeper into the overseas market.
Moreover, LogiNext will also utilise the funding for research and development (R&D). “Our [LogiNext] customer’s testimonials speak to that and with this investment we are looking to build an even superior product which will help our customers differentiate from their competitors,” LogiNext CTO, Manisha Raisighani, said.
Founded in 2014 by Sanghvi and Manisha Raisinghani, LogiNext is a software-as-a-service (SaaS) company that leverages machine learning and cloud technology to provides solutions to manage and optimise logistics and field service operations.
“In the fierce competition for making sense out of huge amounts of location data, LogiNext has already taken the lead and created the product which helps customers massively slash logistics costs and automate the complex logistics operations,” Sanghvi said, in a press release.
LogiNext has over 200 clients from ecommerce, retail, consumer goods, express transportation, utilities, food, and beverages segment. In 2019, the company added 10 Fortune companies to its clientele, which includes McDonald’s, Decathlon and Singapore Post. In 2020, the company is planning to have another 30 Fortune funded companies on board.
LogiNext believes that the biggest challenge in this segment is to drive the change in human behaviours on the ground. Sanghvi told Inc42 since most of its users are traditional users and have a slow culture, therefore they require a strong push.
Headquartered in California, LogiNext has its offices in India, Singapore, UAE, and Indonesia. The company has a workforce of 125 employees, out of which 100 are based out of Mumbai and the rest 25 are from 8 other cities — including Fremont, Dubai, Delhi, Kuala Lumpur, Singapore, and Jakarta.
LogiNext also claims to be EBITDA (earnings before interest, tax, depreciation, and amortization) profitable since last quarter. In its press statement, LogiNext highlighted that it has been noting a 200% year-on-year (YoY) growth. Sanghvi also noted that the company has had a 3x YoY growth for the last three years.
To accelerate its growth even further, LogiNext is planning to acquire two undisclosed companies this year. One of the companies is from Europe, whereas the LogiNext is yet to zero down on the second company. However, cofounder Sanghvi told Inc42 that they are considering acquiring a company from India, however they haven’t decided yet.