Rivigo, a logistics startup that aims to build reliable and safer logistics network, is reportedly in talks with Japan-based SoftBank to raise around Rs 641 crore ($100 million) in a new funding round.
A report from Economic Times says that if the funding round goes through, it could value the company at over $1 billion — making it a ‘unicorn’. The same report goes on suggesting that the startup could raise around Rs 1,283 crore to Rs 3,207 crore ($200-500 million), citing people aware of the matter.
It is not yet known if the Japan-based conglomerate will invest directly in the Gurugram-based startup, or it will invest through its $100-billion SoftBank Vision Fund.
SoftBank has been actively investing in India, and has recently amplified its game. It recently made record-breaking investments in Paytm and Flipkart. While it invested Rs 9,000 crore in Paytm, Flipkart received Rs 16,000 crore — biggest yet for an Indian internet startup.
Founded by McKinsey alumni Deepak Garg and Gazal Kalra in the year 2014, Rivigo is a technology-enabled company that offers logistics services and solutions in India. Not only it is the largest buyer of trucks in India but has also launched a slew of technology products over the past year.
Its tech platform includes a network of sensors that are used to monitor various parameters, including the temperature of refrigerated shipments, track security and location, and the performance of each vehicle down to its individual parts.
Since its foundation, the company has managed to raise over $100 million in funding. In October last year, it raised $75 million from private equity major Warburg Pincus. SAIF Partners has also backed the startup, and invested $30 million in its Series A round.
Earlier this year, it raised Rs 100 crore in debt funding from a clutch of lending private sector banks. At the time, the company said that the money would be used for the expansion of its fleet of trucks.
Rivigo is working with companies across various sectors, including e-commerce, fast moving consumer goods, automobile, pharmaceuticals and cold chain space. With more than 2,100 vehicles in its fleet, Rivigo has enough room to grow, and the upcoming funding will allow the company to do so.
Companies similar to Rivigo are dependent on the growth of India’s manufacturing, e-commerce, and retail industries. It is expected to boost India’s logistics market at a compounded annual growth rate of 12.17 percent to $302 billion by 2020.