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Gati to increase delivery capacity with Browntape investment


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Logistics company Gati has invested an undisclosed amount in online order and inventory management company Browntape, the company said in a filing with the stock exchanges. Founded in 2012, Browntape provides an order and inventory management solution which enables merchants to sell on various marketplaces like eBay, Amazon, Flipkart, Tradus, Shopclues, Rediff and Shopify among others.

Gati will be utilizing Browntape’s platform to develop a single window solution for customers which will integrate its logistics network. Online sellers will be able to manage ecommerce ecosystem and monitor order, physical product, and information flow.

Browntape had previously raised an undisclosed amount of investment from SeedFund and investor K Ganesh back in 2014. The company had previously received seed funding of $30,000 while being part of GSF Accelerator’s second startup batch. Browntape now prices its product at Rs 1.85 per order and seems to have moved from its older pricing plan in 2014.

Note that Gati said that it would be investing in the startups in the logistics space in February. At the time Gati’s chief strategy officer Dhruv Agarwal said that these would be strategic investments aimed at building capacity and capability. He added that Gati is aiming to deliver one million packages a day by 2020. To give context, in Q4 FY16, In Q4 FY16, Gati said that its ecommerce business saw about 16,000 orders per day. Agarwal added that during Flipkart’s Big Billion sale, the company was processing close to 45,000 to 50,000 orders per day across the country.

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Gati’s peak daily delivery capacity stood at 72,000 packages per day, as of March 2016. Its last mile delivery fleet, a mix of bikers, drivers and ecommerce franchises has grown to 2,400.

 

Other logistics tech investments

The logistics technology space has seen a lot of action the last few months:

– This morning, Gurgaon-based logistics services provider Rivigo raised $75 million from an affiliate of Warburg Pincus for a minority stake.

– In September, Zomato acquired Sparse labs, a bootstrapped logistics-tech company. Sparse Labs has an Android application which helps restaurants track their in-house delivery fleet.

– In May, Flipkart’s logistics company Ekart launched a courier service called Ekart Courier in a bid to build a direct consumer facing business.

– Logistics company Xpressbees raised $8 million in a round of funding from SAIF Partners and Vertex Ventures.  Expressbees is also the logistics arm of baby products e-commerce site FirstCry.

– In Decmember, Holisol Logistics raised $10 million in a round of funding from CLSA Capital Partners’ ARIA IV Funds. It provides end to end logistics management services including purchase order management, distribution management, cargo consolidation, project logistics etc.

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