More money for logistics. One of the first to offer services in this niche, Mumbai based logistics startup The Porter has secured $5.5 Million (Rs 35 crore) in its second round of funding led by Sequoia Capital India, with participation from other angels such as Shaadi.com founder Anupam Mittal, Freecharge co-founder Sandeep Tandon and JM Financial’s Rajeev Chitrabhanu.
The Porter, which was founded last August by IIT graduates Pranav Goel, Uttam Digga and Vikas Choudhary has since scaled up the size of its operations and is contemplating a move into other major cities such as Delhi.
Speaking on the current round, Sequoia Capital MD Gautam Mago said
Through the use of mobile technology for demand and supply aggregation, Porter is able to build a transparent marketplace, thus increasing vehicle utilisation while providing a standardised service. Business transportation will be transformed by smartphones, just as consumer transportation has been.
The Porter raised INR 3 crores in its initial round of funding from Kae Capital, and now claims to process more than 2,000 transactions every month which — if true — could mean monthly revenues of up to 2.5 million — which coming from a startup barely a year old, is impressive.
The Porter will be competing against the likes of Moovo, which recently raised an angel round through Yuvraj Singh’s YouWeCan ventures. However, more notably, The Porter will face competition from TruckFirst, which raised an hefty $10 Million recently to power up its logistics platform.
Logistics startup have started coming up at a rapid pace all across India, and have ben attracting decent amount of investments too. There are numerous reasons why this phenomenon is taking place.
First, these startups provide drivers with steadier employment and secondary sources of income — such as through their advertisement schemes. Secondly, they obviously provide consumers with a haggling free, transparent and user-friendly experience. Thirdly, they are principally organizing a market with a net worth of around $6 Billion per annum and potential worth many times that figure, but has largely remained scattered and unorganised.