EbixCash, the Financial Exchange Division of NASDAQ-listed software company Ebix, has acquired a 67% stake in Delhi-based B2B logistics startup Routier. The quantum of investment remains undisclosed.
The latest investment marks Ebix’s first strategic investment in an Indian startup. Ebix will help Routier by providing added technology expertise, financial strength and brand recognition to accelerate its penetration of major trucking logistics.
Routier was founded by Indian Institute of Management (IIM) alumnus Ankur Dahiya and Harvard Law School alumnus Adwait Vikram Singh. The startup provides a technology-driven platform to offer end-to-end logistics solutions.
The logistics startup aims to drive efficiency for all marketplace stakeholders, using an innovative blend of data analytics, artificial intelligence and end-to-end streamlined functionality available over the cloud.
Talking about the investment, Robin Raina, Ebix Chairman, President and CEO, said, “Exchanges and marketplaces are meant to provide a network effect that drives efficiency for all concerned and are best targeted at industries that are highly inefficient and lack technology-savvy,”
He further added, “India’s trucking industry is a perfect example of such an opportunity to deliver tremendous value and efficiency, and thus we are quite excited to be partnering with Routier in its mission to redefine the trucking logistics industry.
Some of Routier’s notable clients include Coca-Cola, Asian Paints, and Samsung, proving its ability to add efficiencies to the logistics supply chain.
According to the Economic Survey 2017-18, Indian logistics sector, which is currently worth $160 billion, is expected to grow at a CAGR of 10.5% to reach $215 billion by 2020, owing to the implementation of GST.
The growth of the logistics sector in India is further accelerated by the other sectors dependent on logistics like e-commerce and agriculture, which are on a growth trajectory, owing to government’s efforts to provide a boost to the Indian economy.
Other players in the logistics domain competing with Routier include BlackBuck, Rivigo, Porter, TruckEasy, among many others.
Ebix provides On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries. Ebix has been on an acquisition spree in India, with the latest acquisition marking its sixth acquisition in the last four months.
In a recent news, Ebix also acquired assets of Business Travels, to grow Via operations.
In September, Ebix acquired fintech company Miles Software for ₹136 crores.
In August, Ebix acquired two travel companies Mercury Travels and Leisure Corporation, to strengthen its travel business.
In July, Ebix acquired Indus Software Technologies for ₹200 crores, to integrate into Ebix’s Financial Exchange EbixCash offering in India and abroad.