Necessity is the mother of invention and logistics is the soul of every invention. With the ever-increasing ecommerce and exports boom in India, requiring seamless and timely intercity, intracity, and international transfer of goods, logistics is at the core of the growth and continuous movement of various sectors in the country.
Consider this: One off-day can cause losses worth a whopping $146 Mn (INR 1000 Cr) to the $140 Bn worth logistics sector in India.
In this increasingly competitive space, a few startups are causing disruption by introducing revolutionising solutions in the market. As we continue to examine the Indian startup ecosystem closely, we dived into the financials of two of the biggest players in the logistics space in India — BlackBuck and Rivigo — and found some interesting things to ponder upon. The biggest of them all — Delhivery — is prepping for an IPO.
Employee-Friendly Or Not, The Costs Tell It All
Founded in 2014, Rivigo, one of the fastest startups to become a unicorn in India, claims to have a fleet of 2,100 trucks and a network across 150 Indian cities. The company has raised $125 Mn in funding till now and has identified the use case for having its own technology-enabled fleet, which is also its USP to grow in the market.
On the other hand, BlackBuck, which started its operations in 2015, has 120K trucking partners across 300 locations. The startup has raised about $100 Mn in funding. It differentiates itself among both customers and suppliers on the following three big claims — truckload availability, “fairest price ever” in the market, and a “never-before-seen experience” on the platform, in terms of execution.
For the benefit of its 800 employees, BlackBuck spent INR 38.77 Cr ($5.65 Mn) in FY17, which is 6% of its total operational expenses. This was a 336% jump from its INR 8.88 Cr ($1.29 Mn) employee benefit expenses in FY16. The employee expense rate, which is quite less than the industry average of employee expense, doesn’t include expenses on truck drivers.