Hyperlocal delivery startups are going through rough times in India. While many have shut shop or pivoted, Rivigo has managed to keep the investors interested. The startup has raised a whooping $75 million in its Series C funding round from Warburg Pincus.
This funding round comes in just ten months of the company’s Series B round. In December last year, it had raised $30 million as a part of the Series B funding.
The proceeds of the current round will be used by the startup to scale up various service offerings across India, and also to accelerate investment in technology and talent. Commenting on this, Deepak Garg, Founder and CEO of Rivigo, said,
This funding will support our aspiration of becoming the largest logistics company in India by 2020. 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.
Rivigo claims to have a fleet of 2,000 trucks. It says that it has a reliable pan-India network across 150 cities. The company caters to sectors such as apparel and lifestyle, auto components, pharmaceuticals, e-commerce, electronics, consumer goods, engineering machinery, books and publications etc.
Commenting on this funding round, Viraj Sawhney, Managing Director of Warburg Pincus said,
We are excited by Rivigo’s growth prospects and its potential to disrupt the Indian trucking industry, which is by far the largest segment of logistics in India. The company is delivering a fundamentally superior proposition for customers and truck drivers by deploying a unique operating model, enabled by the smart use of technology and analytics. The prospects are likely to be further enhanced upon implementation of GST.
The company was founded in 2014 by Deepak Garg and Gazal Kalra as TruckFirst, but later re-branded as Rivigo. The company claims that based on its innovative ‘drivers relay system’, truck loads are delivered to Chennai from Delhi in two days instead of the conventional eight days. Using drivers relay, it makes sure drivers get back home on the same day (or within 24 hours), thereby saving 50-70 percent of the turnaround time on long-haul routes.
Apart from the $30 million Series B round from SAIF Partners, the startup had secured $10 million in Series B round of funding. Prior to that, it had raised seed round from Singapore Post.