Pune-based Ntex Transportation Services Pvt Ltd has raised $7 million (Rs 45.5 crore) as part of a Series A round from Kalaari Capital Advisors Pvt Ltd and Norwest Venture Partners.
The company, which runs and operates transportation technology startup ElasticRun, will use the proceeds to upgrade its tech infrastructure, on-board talent and expand operations.
“Indian logistics is considered a high capex and low-tech industry. The challenges and technology requirements are highly customised and contextual to our market. We have the right mix of transportation technology and a seasoned operations team to deliver innovative products for this space,†Sandeep Deshmukh, co-founder and CEO, ElasticRun said in a media statement.
ElasticRun was founded in March 2016 by Deshmukh, Saurabh Nigam and Shitiz Bansal. Deshmukh, an alumnus of IIM-A, had stints in Amazon, Apple and DHL before starting up.
Nigam, a civil engineering graduate from the Delhi College of Engineering (DCE), had worked with EdgeVerve and Infosys in various engineering and programme management roles. Bansal has had extensive experience as a technology architect for several shipping platforms of DHL after passing out from IIT-BHU.
ElasticRun is an asset-light, variable-capacity logistics network. The company’s technology platform can build aggregated transportation capacity in tune with the requirements of its varied clientele.
It eliminates fixed set-up costs by aggregating logistics resources across channels. ElasticRun helps its customers reduce logistics spend by eliminating wastage in transportation capacity and run zero-capex logistics functions. The company caters to clients in the e- commerce, pharmaceutical, food and automotive sectors.
“Inefficiencies in the logistics function is a major hindrance to growth and profitability of many sectors, including, ecommerce, FMCG and pharma. ElasticRun’s technology and execution engine not only lower logistics costs, but dramatically improve delivery times and customer experience,†said Rajesh Raju, managing director, Kalaari Capital.
Last month, Tiger Global-backed Zinka Logistics Solutions Pvt Ltd, which operates business-to-business logistics startup BlackBuck, had raised $70 million (Rs 476 crore) in a Series C funding round.
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