Pune-based ecommerce logistics firm, Xpressbees, has raised around $8 Mn (about INR 54 Cr) from SAIF Partners and Vertex Ventures, the venture arm of Singapore government’s investment fund Temasek.
The startup is also the logistics support provider for online babycare retailer FirstCry. It claims to deliver 60,000+ shipments every day.
Owing to the problems in the delivery and reverse logistics, online retailers are building their own logistics and delivery networks. This has given them an edge for cost optimisation as well giving control from order processing to shipment.
Most of the leading ecommerce companies including Flipkart, Myntra and Amazon have their own last-mile logistics support. Indian ecommerce major Flipkart ships deliveries through Ekart, whereas Snapdeal picked up stake in GoJavas to support its last mile delivery hassles. Besides, furniture etailer, FabFurnish, launched its logistics service Fabone, and after spinning off its medical business as 1mg, wellness etailer Healthkart has also built its own distribution network.
Where on one side, logistics companies like Xpressbeess are getting third party ecommerce companies on board, on the other side, online retailers like Flipkart are adding more power to their in-house logistics services. Recently, Flipkart reportedly infused $98.4 Mn (INR 666 Cr) in its logistics arm eKart.
Xpressbees’ parent FirstCry has raised $69 Mn so far from investors including IDG Ventures India, SAIF Partners, Vertex Ventures, Valiant Capital, NEA and Ratan Tata.