Logistics startup Rivigo raised funding of $15 Million (Rs 100 Crore) of debt financing from a clutch of leading banks and other privates investors. However, the identities of the investors are undisclosed. The new funds will be used for developing products, expansion of its fleet of trucks and developing technology that automates its trucking operations.
Prior to this, in November 2016, Rivigo has raised $75 Million of Series C funding from Warburg Pincus and in December 2015, they raised $30 Million of Series-B funding from SAIF Ventures. The rounds are registered as one of the biggest funding rounds in Indian Logistics startup. The total equity funding of the startup is $114.9 Million.
The Gurgaon based startup was founded in the year 2014 by Deepak Ghara an IIM-Lucknow alumnus and Gazal Kalra Harvard alumnus. Rivigo is a technology-enabled company that offers logistics services and solutions in India. The company coordinates delivery trucks going between different cities, using technology and innovative operational processes. It aims to significantly improve the truck driver ecosystem and operational efficiencies while doing so.
On the investment, Deepak Ghara, CEO of Rivigo said, “We have raised the debt to finance our assets. By the end of this month, we will have 2,100 trucks that would make Rivigo the largest buyer of trucks in the country.” When asked about the debt he replied, “We have an ongoing credit line with the banks, and have also paid off a significant portion of the debt raise us.”
Rivigo has over 2000 registered trucks and has network spread over 150 cities across India. They transport the goods related to apparel and lifestyle, auto components, pharmaceuticals, e-commerce, electronics, consumer goods, engineering machinery, books and publications etc directly from the industry.
Rivigo will be competing with other logistic startups like E-Com Express, Delhivery, BlackBuck, Gojavas, RoadRunner, QikPod, Shadow Fox and much more. Recently, in February 2017, BlackBuck got Series B funding of $30 Million from Capital Sands and International Financial Corp. Read more about BlackBuck.
According to data from venture capital intelligence firm Tracxn, funding money toward logistics startups jumped from US$69.3 million to US$617.7 million between 2014 and 2015. The Union Budget 2017 has earmarked Rs.2,41,347 Crore for the transportation industry. Hopefully, the money will be used for the benefits of Logistics startups. Read more about Indian Logistics Startups.