Rivigo, the Gurgaon based end-to-end logistics solution provider, has today raised a whooping $75 million in its Series C round of funding. The investment comes from private equity firm Warburg Pincus which has acquired a minority stake in the company.
This is the third investment from Warburg Pincus in the country’s logistics sector. Earlier, the global PE firm had backed e-commerce logistics solutions provider Ecom Express and third-party logistics company Stellar Value Chain Solutions.
With new funding coming in, the company will continue to further build its network of processing centres and pit stops across the country. It also plans to enhance its track fleet size to about 5,000 over the next 12 months. Currently, the company is operating about 1,500 vehicles, and employs about 3,000 drivers.
Commenting on the investment, Deepak Garg, chief executive of Rivigo, said,
This [funding] is going to be primarily utilized towards technology and hiring. We have to scale up our tech talent, investments in IoT, automation and data sciences a lot more. We also have to build our next level of leadership cadre, given the growth we’re seeing.
He further says that the company is also poised to reap benefits of the recently-passed Goods and Services Tax (GST) Bill. He expects the bill to lead faster turnaround times, create pull-based supply chains and help in the re-configuration of warehousing and distribution networks.
Viraj Sawhney, managing director at Warburg Pincus, said,
The company is delivering a fundamentally superior proposition for customers and truck drivers by deploying a unique operating model, enabled by technology and analytics. The prospects are likely to be further enhanced upon implementation of GST.
Founded in 2014 by Deepak Garg and Gazal Kalra, Rivigo claims to reduce 50% of the delivery time to clients. It is working with companies across various sectors, including, e-commerce, fast moving consumer goods, automobile, pharmaceuticals and cold chain space.
Last year, the logistics startup had raised $30 million in its Series B round of funding, led by SAIF Partners with participation from other investors as well. Prior to that, it had raised $10 million in Series B round of funding and an investment in its seed round from Singapore Post.
Last month, the company had appointed Mukesh Bansal, founder of Curefit and Mytra as a board member to advise the company on product and growth strategy, organisation building and fundraising. With this new funding round, Viraj Sawhney has also joined company’s board.
The trucking market is said to be a $2.5 to 3 trillion market globally, which is 20 times more than the cab market revenue pool, said Garg. He also added that the company plans to scale the product globally in the coming years.