Private equity firm Warburg Pincus has invested $75 million (about Rs 500 crore) in surface transport logistics provider Rivigo Services for a minority stake, in one of the largest equity financing rounds raised by an Indian startup this year.
Rivigo, will deploy the fresh funds in technology and talent. We will scale up our network of processing centers and pit stops to give pan-India coverage to our customers.
Deepak Garg, Founder and CEO of Rivigo said,
“We are delighted to welcome Warburg Pincus as our partner, and look forward to leveraging their global expertise and network in logistics. The infusion of capital will help us scale up our various service offerings across India, and importantly, accelerate our investment in technology and talent. This funding will support our aspiration of becoming the largest logistics company in India by 2020.”
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 company, which serves sectors including ecommerce, frozen food, dairy, automotive and pharmaceuticals among others, has also developed algorithms and filed patents in the USA that deal with managing fuel efficiency and pilferage, availability of drivers in the relay system, and loading plans to help reduce damages to products carried by its trucks.
The company will continue to further build out its network of processing centres and pit stops across the country, as well as enhance its track fleet size to about 5,000 over the next 12 months. It currently operates currently about 1,500 vehicles, and employs about 3,000 drivers.