SAIF Partners backed Rivigo, is all set to spend between $80 million-$100 million in the new fiscal year, as it plans to outshine its peers by expanding at a rapid pace. The surface transport logistics services provider Rivigo, was founded by Stanford Graduate School of Business and Harvard Kennedy School of Government alumnus Gazal Kalra along with IIT Kanpur and IIM Lucknow alum Deepak Garg. The 15-month Gurgaon-based startup will be scaling up its network of processing centres and trucking pitstops. This will be accompanied with growing its cold chain business – Rivigo Green.
In a statement given to ET, Garg says:
“We are very focused on delivering high-quality service to our customers. In the B2B segment, reliability is of paramount importance. We want to change the way customers think about procurement and logistics. It should shape the business strategies of companies,”
Rivigo, counts a number of multinational and domestic conglomerates, such as Nestle, Hindustan Unilever and Havells among its clientele. It also counts some really established names such as GATI, Blue Dart and TCI Group among others, as its competitors. The startup serves the e-commerce, auto, agriculture and fast moving consumer goods sectors.
Rivigo will ramp up its current network of 41 trucking pitstops, and a similar number of processing centres, to over 200 across the country, over the next 12 months. It also expects to expand its trucking fleet size from its current 800, to between 2,500-3,000 over the same period. Rivigo owns the majority of its truck fleet, with a small portion contributed by aggregators. Garg adds:
“We are completely shifting away from the way things have worked for so many decades. Once you make that shift, you have to also prove the model for the entire ecosystem…We were the largest buyers of trucks last year, and have been this year as well… Till the extent, we can establish and growth the ecosystem to level, where we are confident that the same level of service can be achieved through the aggregation model, we will scale that,”
According to Garg, the venture is targeting a revenue run-rate of $100 million within the next three months. There are also plans to enter into, or grow its presence, in newer segments, such as secure goods and appliance movements. He also says that they have no plans to raise fresh funding, and the existing funds are enough to fuel its growth plans.
“We have done the math, and there is money in the bank. We will grow by 3X-4X this year. Unlike most others, we have access to debt fund funding with banks. That’s the beauty of our business model,”
The startup had raised $30 Million last year from SAIF partners and others for their series B round of funding using equity and debt financing.