Tech-Enabled Logistic Startups to Receive Investment

Tech-Enabled Logistic Startups to Receive Investment

Rajesh Yabaji, Chanakya Hridaya, and Ramasubramaniam B., the three IIT-Kharagpur alumni founded Zinka Logistics Solutions Pvt. Ltd which operates Blackbuck in 2015. Blackbuck provides B2B logistics solutions for long-haul trucking and brings shippers and truckers through their online marketplace which facilitates intercity freight transportation.

This company currently have more than 1000 branches across the country and has more than 200,000 trucks and 8,500 shippers on their network. Their clients involve Asian Paints, Coke, Godrej, Unilever, Jyothy Laboratories Britannia, Marico and EID Parry. As a three-year-old coordination, it is a well-funded startup in the logistic-tech space and with the latest funding, it has raised to almost $140 million in external funding. In contrary, as the operating revenue rises, the losses also widened on account of higher expenses. This firm’s financial statements showed that the increase in revenues are based on services related to intercity long-haul logistics and as this revenue increases, the net losses also widens up. This expense includes transportation costs, which is accounted to be the largest percentage of the expenses which is 93%.

For the latest funding exercise, the Blackbuck still has not replied if it is part of a larger funding round. Blackbuck is also reported to have raised more than hundreds of millions in a fresh funding round from other potential investors such as SoftBank and Naspers. Moreover, they have not given comments on their latest financial performance.

Sands Capital, a private equity firm founded in 1992, has a concentrated growth type of investment style. Their investment process varies whether independent, bottom-up, or research driven. This firm invested $7.25 million and the International Finance Corporation handled the remainder of the $12.43 million in the venture capital fund received by the Blackbuck. Aside from this, the Sequoia Capital, another private investor raised $27.4 million which makes the value of Blackbuck amount to $202-207 million.

Another logistic startup venture firm, LetsTransport received funding of $13.5 million from Fosun International and Bertelsmann India Investments for intra-city deliveries. LetsTransport was created by another IIT Kharagpur alumni, Sudarshan Ravi, Pushkar Singh and Ankit Parasher in 2015. This companies’ platform gives inter-city aggregation of the mini trucks and huge vehicles through out the industry sectors to meet the demand. This company offers customized attachment solutions for clients. In addition, they also offer value-added services like screened drivers, audited and GPS enabled vehicles, point to point billing, status updates, a 24/7 service and greater efficiency. These services are all at transparent and economical pricing. Similar projects happened to other tech-enabled logistic companies such as Freightwalla. This company raised an undisclosed sum from venture capital firms like Kae Capital and Tekton Ventures. A logistics management firm in the SaaS, FarEye acquired internet Things-powered freight logistics marketplace Dipper. ElasticRun raised an $8 million in round co-led by two existing investors Norwest Venture Partners and Kalaari Capital. And lastly, Dehlivery is reported by VCCircle that they had put plans for an initial public offering and was currently seeking fresh private funding.

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