Rivigo, an end-to-end logistics solution provider, has raised around ₹100 crore in what is said to be a debt funding round. The funding comes from a clutch of lending private sector banks, and will be used for the expansion of its fleet of trucks.
With the current fundraising round, the Gurugram-based startup has now raised about ₹400 crore from some of the country’s largest private sector lenders, including Kotak Mahindra Bank, HDFC Bank, YES Bank and ICICI Bank.
Apart from expanding its fleet of trucks, the company is also preparing to introduce new products, including a technology to automate its trucking operations. As per Deepak Garg, the company’s CEO, they will have 2,100 trucks by the end of this month. Thus, making Rivigo the largest buyer of trucks in the country.
Prior to this Rs 100 crore funding, the company had raised $75 million from private equity firm Warburg Pincus in November last year. That round was marked as the largest sum raised by an Indian startup in 2016, and is being used to improve their product and ramp up hiring, among other things.
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.
Before raising $75 million in its Series C round, the logistics startup had raised $30 million in its Series B funding round, 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.
Unlike other startups in this space, such as BlackBuck, Rivigo does not have an asset-light model. It has its own fleet of trucks and has built an entire network of supply-chain and logistics infrastructure.
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.