Logistics tech start-up, Porter pulled in funds worth $100 million (Rs 750 crore) in a Series E funding round led by Tiger Global Management and Vitruvian Partners. Its existing partners Sequoia Capital India and Lightrock India also participated in the round. The fundraise made Porter’s valuation zoomed 5X from $100 million to $500 million, sources aware of development confirmed to the leading publication, BusinessToday.In.
“We are excited to welcome the two marquee global funds with a great track record of backing enduring businesses the world over. This funding round, in the current economic scenario, is a testament to the execution of the entire Porter team. The idea behind Porter was to solve the existing market gap between demand and supply by creating a tech-enabled liquid marketplace to drive better vehicle utilization and service levels for our users,” said Pranav Goel, chief executive officer, Porter.
The company focuses on intra-city logistics and aims to use the capital infusion to consolidate its position, strengthen staffing, and expand operations to make space in the top 35 cities of India by 2023, further consolidating its position as a leader in the logistics market.
The adoption of software services and other electronic infrastructure in India’s $200 billion logistics business has set the path for massive upheaval, particularly among start-ups. This has been exacerbated even further by the Covid-19-induced shift in buying behaviour to internet shopping.
Pranav Goel, CEO of Porter, said the company is delighted to welcome Tiger Global and Vitruvian Partners, two flagship global funds with a track record of backing lasting enterprises throughout the world.
“This funding round, in the current economic scenario, is a testament to the execution of the entire Porter team. The idea behind Porter was to solve the existing market gap between demand and supply by creating a tech-enabled liquid marketplace to drive better vehicle utilisation and service levels for our users. Over the years, we have realised that apart from being a great business opportunity, we have a chance to make a positive impact on the lives of over 2 lakh driver-partners,” Goel added.
The company claims that its technology-enabled marketplace helps drivers to add an extra 30% in their earnings while making sure that there are lower wait times for customers.
“In a challenging market, Porter has developed excellent repeat driver and customer cohorts, demonstrating the platform’s unique value. We are excited to partner with Porter as it reinvents and markedly improves intra-city logistics across India,” said Griffin Schroeder, Partner, Tiger Global.