IBEF: July 12, 2019
Rivigo, a technology- enabled logistics firm, has raised a funding of US$ 65 million from its ongoing series in E round. This investment is done by already present investors Warburg Pincus and SAIF. Warburg is a private equity fund and SAIF Partners is a multi-stage investment firm.
Rivigo has seen a loss of Rs 270.23 crore (US$ 37.56 million) in FY18, which was almost double the loss of Rs 123.45 crore (US$ 17.15 million) from previous year. Rivigo plans to improve its financial metrics across all businesses and intends to be profitable by the end of this financial year.
To successfully implement its aim, company also launched National Freight Index (NFI). NFI aims to bring transparency to the largely unorganized logistics sector. NFI is established on the study of truck rentals over the three years.
Rivigo is based in Gurugram and was launched in 2014. It has a unique idea of ‘relay trucking’ model, under which a truck driver hands over the vehicle to another driver at a chosen pit stop. This ensure that the truck is not unused at any point during the trip.
This relay model confirms that the drivers are not behind the wheel for more than four to five hours at a stretch and make their way home the same day. It also has a transportation marketplace. The funding gathered will be utilized by the company to expand and reinforce its technology and network coverage. The company till now has the biggest network coverage with more than 29000 pin codes in India. This system ensures that the truck pilots have better life and customers gets exceptional service.
India’s transportation market is around US$ 150-160 billion. Rivigo is has technology which is exceptional in trucking and is different from traditional industry in India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.