Mumbai-based hyperlocal logistics services startup Grab has reportedly raised an undisclosed amount of debt financing from UAE-based logistics firm Aramex Ventures Llc.
As per the documents with the registrar of companies (RoC), Grab has raised about $20 Mn (INR 13.34 Cr) in debt from Aramex Ventures in the first tranche. It plans to raise two more tranches from Aramex for almost 25% of the total paid-up share capital on a fully diluted basis.
Founded by Jignesh Patel, Nishant Vora and Pratish Sanghvi in 2012, Grab (formerly Grab a Grab) is a hyperlocal logistics services to enterprises such as restaurants, food tech platforms, groceries, ecommerce platforms, and banks. Its clientele include companies like Snapdeal, Zomato, McDonalds, Big Bazaar, RBL Bank, Pantaloons, Faasos, Pizza Hut, and more.
According to its website, Grab works with 1280 merchants across 10 cities and has delivered 5755958 orders till date.
Grab competes with other startups like Shadowfax and Opinio, in this domain. Shadowfax raised $8.5 Mn, while Opinio raised $7 Mn, inSeries A funding, last year. The hyperlocal delivery startups are now struggling to improve their unit economics and reduce cash burn. However, logistics is poised to be the defining factor for the success of ecommerce companies in retaining their customers.
In the hyperlocal delivery service, recently, Mumbai-based entrepreneur Sandiip Modi acquired Jaipur-based Street Jumper, while on-demand auto rickshaw aggregator Jugnoo forayed B2B logistics with the launch of on-demand, hyperlocal logistics service Dodo Deliveries. Also, logistics analytics firm, LogiNext, launched its last mile delivery platform Sprintr, in April this year.
According to Tracxn, at least 27 hyperlocal B2B delivery startups were founded in India since January last year. The sector has witnessed about $38 Mn in investments so far.
The development was first reported by Livemint.
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