Gurgaon-based logistics services provider Rivigo has raised Series D funding of $50-million (approx Rs 330 crore) from its existing investors Warburg Pincus and SAIF Partners, according to a report from VCCircle.
The company has reportedly allotted 8,231 Series D compulsorily convertible cumulative preference shares, at Rs 2,53,765 per share, to SAIF Partners India for a total consideration of Rs 208.88 crore. And, 4,477 Series D compulsorily convertible cumulative preference shares to Warburg Pincus arm Spring Canter Investment for a total of Rs 113.61 crore, the Economic Times later confirmed citing information from research platform Tofler.
Founded in 2014 by Deepak Garg and Gazal Kalra, Rivigo currently provides logistics to clients across verticals such as e-commerce, FMCG, automotive, retail and pharmaceuticals with features like GPS enabled live tracking, on the go analytics and paper-free billing etc. In November 2016, Rivigo raised $75 million from an affiliate of Warburg Pincus for a minority stake. Rivigo had previously raised $30 million and $9.6 million from SAIF Partners in December and May 2015, respectively.
Logistics as a segment is gaining a lot of attention in recent past. There are many recent developments from players like Ecom Express, Locus, Delhivery, Loadshare, Blackbuck, and also NSE-listed Gati etc in this space.
In October 2017, the government of India launched the International Tracked Packet service, which provides cross-border shipping for the e-commerce sector in the Asia-Pacific region. This service is provided by the Department of Post, and offer features like track & trace, volume discounts, pick up facility, and compensation for loss or damage.
While there are a number of standalone logistics companies in India. E-commerce players too have started having their own logistic arms in the country.
This month, Flipkart infused Rs 1,632.81 crore in Instakart Services Pvt. Ltd, which operates its logistics arm eKart, through Singapore-based group company Klick2Shop Logistics Services International Pte. Klick2Shop had earlier invested Rs 961.4 crore in eKart in October 2017. Earlier, in January 2016, eKart had secured Rs 666.49 crore from Klick2Shop by allocating 66.64 crore shares at Rs 10 per share.
Amazon is also strengthening its logistics power in the country. In November, Amazon India’s logistics arm Amazon Transportation Services (ATS) further received funding of Rs 130 crore from the US parent. ATS received Rs 207 crore worth of funding from Singapore-based Amazon Corporate Holdings and Amazon Malaysia, in June, and before that, it had received Rs 67 crore in September 2016.
We also saw reports saying that Chinese conglomerate Alibaba Group is investing $100 million in Pune-based logistics company XpressBees.