The fundraise is said to be an extension of the company’s recent Series E round
Delhi NCR-based Rivigo has raised $65 Mn in July 2019
Post which, Rivigo has laid off nearly 70-100 employees
Logistics startup Rivigo has raised about $4.9 Mn funding from a South Korea-based investor KB Global Platform Fund, according to the company’s latest MCA filings. This seems to be an extension of the company’s recent $65 Mn Series E funding round in July.
With this round, the company has allotted 1.2K Series E1 equity shares to KB Global Platform Fund at the premium of INR 2.7 Lakhs. The logistics unicorn’s total fundraise till now is around $220.9 Mn.
The Delhi NCR-based company was founded by Deepak Garg, and Gazal Kalra in 2014. Some of the key investors in the logistics company include SAIF Partners and Warburg Pincus.
Rivigo offers pan-India delivery services to ecommerce, pharmaceutical, automobile, cold-chain and fast-moving consumer goods companies. The company claims to own and operate over 2.1K trucks and covering more than 29K pin codes across India.
In FY18, Rivigo reported a revenue of INR 720 Cr, along with the company expenses at about INR 990 Cr. Soon after the company’s Series E funding round, it has laid off nearly 70-100 employees. The company also reportedly withdrew around 50 offers from 10 premier campuses before joining dates. This included candidates from premier institutes such as National Institute of Industrial Engineering, Indian School of Business, Indian Institute of Technology, and Indian Institute of Management.
The company was earlier reported to be transitioning from it current asset-heavy business model where it both owns and operates the trucks, to an asset-light business model wherein it might start offering its data analytics and relay model as a service.
Logistics Sector In India
India’s logistics sector is poised to touch the valuation of $215 Bn by 2020. In this space, Rivigo 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.
In May, BlackBuck closed a $150 Mn Series D round led by Goldman Sachs Investment Partners and Silicon Valley-based Accel. The fresh funds will be helping BlackBuck penetrate deeper into the market, by on boarding new trucking partners along the existing as well as new transportation corridors. BlackBuck CEO Rajesh Yabaji has claimed that BlackBuck holds over 90% of online market share of trucking in the country.
[This development was first reported by Entrackr.]