Rivigo has been successful in raising $65 Mn (~ Rs 445 crore) in its recent round of funding, led by two existing investors Warburg Pincus and SAIF Partners. The Gurugram based logistics firm plans to further expand and strengthen its technology, making this deal a well-needed stake for the company.
The said funding has brought Rivigo closer to the unicorn club of startups. Unicorns are startups with a valuation of at least $1 billion.
The recent funding was a part of its Series E round. Prior to this, the company has raised about $216.2 Mn from investors. With fresh capital in bank, the company is now in a comfortable financial space and intends to be profitable by March next year.
Rivigo’s logistics-tech is carried out using the relay trucking’ model, wherein a particular truck driver does not have to drive more than 5 hours at a stretch. The availability of drivers is ensured at all times and so is their rotation, helping them get enough rest and meet with the families. Navigation and assignments are taken care of using an app.
“Relay trucking is now very well established where relay truck pilots lead a better life and customers gets exceptional service. With technology and freight marketplace, we now want to bring relay to every truck in the country,” stated Deepak Garg, founder and CEO of Rivigo.
In India’s over $150 Bn transportation market, Rivigo does have a few players rivaling it. However, the company separates itself from the rest largely because of the fleet ownership that it has. The company owns most of its fleet, while most other players are currently working on more of an aggregator model.
The company’s revenue skyrocketed to a whopping $105 million at a 77% year-over-year growth rate, as of March 2019. However, it also witnessed some losses which were close to $35 million.
“From building algorithmically complex models to accurately predicting the life journey of a consignment to creating a dynamic pricing engine for the freight marketplace, the company is working on hundreds of unique problems at scale,” said Garg.
Founded by Deepak Garg and Gazal Kalra back in 2014, Rivigo offers logistic services to sectors including e-commerce, pharma, automobiles, cold-chain and FMCG players. Garg, an IIT Kanpur alumnus and Kalra, a Stanford Graduate both worked at McKinsey & Company before co-founding Rivigo.