Artificial intelligence (AI)-driven logistics startup Fleetx.io has raised $3.1 Mn in pre-series B funding from existing investors Singapore-based BEENEXT and India Quotient.
In February this year, the company raised INR 10 Cr ($2.8 Mn) in its Series A round of funding led by Singapore-based venture capital BEENEXT. The round also saw participation from existing investor India Quotient, as well as Snapdeal founders Kunal Bahl and Rohit Bansal, among others.
Commenting on the fundraise, Vineet Sharma, CEO and cofounder, Fleetx said, “We are already at the pre-Covid growth numbers and see a significant demand surge for software and digitisation in the near future. We will utilise these funds to tap on post-covid digitisation opportunities by strengthening our product/tech even further and expand our presence in India and other markets.”
Founded in 2017 by Sharma, Abhay Jeet Gupta, Udbhav Rai, Parveen Kataria and Vishal Misra, Fleetx.io offers a suite of software-based products to help fleets of all sizes monitor and optimise their daily logistics operations. It uses AI and predictive analytics to help businesses improve efficiencies and reduce cost on logistics.
Dirk van Quaquebeke, Managing Director at BEENEXT added, “Fleetx has built a product which is conquering vertical by vertical in what many perceive a crowded space. The team consistently delivers world-class SaaS key performance indicators.”
Last year, the company had raised an undisclosed amount in pre-Series A funding from India Quotient, and LetsVenture’s Angel Fund, with participation from angel investors — Ajay Prabhu, Prashanth Susarla, Sajid Rahman and Aditya Pratap Singh.
While announcing its Series A funding round earlier this year, Fleetx.io cofounder and CEO Vineet Sharma had said that the company was catering to 1,000 clients with its AI-driven fleet management software and growing at 20% month-on-month (MOM). Sharma also said that the company had grown 6X between 2018 and 2019. The company’s client base includes both mid to large fleet owners and enterprise shippers.
Fleetx.io competes with several other startups in the logistics space such as BlackBuck and GreyOrange.
Streamlining Logistics For India
The logistics market in India has been fragmented for the longest time, even though in the last few years, several tech startups have identified the need to organise this sector. In the context of the funding amount, the recorded growth rate between 2014 and 2018 for startups in the logistics sector is 226%, according to Inc42 Plus.
The market size of the Indian logistics sector is expected to hit $215 Bn by 2020, logging 10.5% CAGR, according to the Indian Brand Equity Foundation (IBEF). Logistics also employs 22 Mn people and the count is expected to surge to 40 Mn by 2020. At present, draft national logistics policy is under works and is expected to bring down India’s expenditure on logistics to 9% of GDP from the existing 14%.