The Gurugram-based startup, Rivigo has raised around INR 100 crore in a debt funding round.
The funding that has come from a clutch of lending private sector banks will be used for the expansion of its fleet of trucks. With the current fundraising round, an end-to-end logistics solution provider has now raised about INR 400 crore from some of the country’s largest private sector lenders, including HDFC Bank, YES Bank, Kotak Mahindra Bank and ICICI Bank.
The company is also preparing to introduce new products, apart from expanding its fleet of trucks, which includes a technology to automate its trucking operations.
According to the company’s CEO, Deepak Garg, they will have 2,100 trucks by the end of this month, which will make Rivigo the largest buyer of trucks in the country.
Prior to this INR 100 crore funding, Rivigo had raised USD 75 million from private equity firm Warburg Pincus in last November which marked as the largest investment raised in 2016 by an Indian startup, and is still being used to ramp up hiring and improve their product, among other things.
Rivigo that was founded in 2014 by Deepak Garg and Gazal Kalra, claims to lessen 50 percent of the delivery time to clients. The company is working across various sectors, including e-commerce, automobile, pharmaceuticals, fast moving consumer goods and cold chain space.
Unlike BlackBuck, an another startup in this space, Rivigo does not have an asset-light model. Instead, it has built an entire network of supply-chain and logistics infrastructure with its own fleet of trucks.
The trucking market is reported to be a USD 2.5 to 3 trillion market globally; 20 times more than the cab market revenue pool, Garg said. The company also plans to scale the product globally in the coming years, he added.