Tiger Global-backed supply chain startup Wiz Freight plans to raise an additional amount in the second close of its Series B funding round after securing Rs 125 crore ($15 million), a top executive told VCCircle.
The company, which made the initial close of its Series B round earlier this month, intends to raise another Rs 125 crore ($15 million) from existing investors, said Ramkumar Govindarajan, co-founder and chief executive officer of Wiz.
The first round, led by Japan-based SBI Investment, valued Wiz Freight at $175 million, post-money, with participation from Tiger Global, Nippon Express Holdings, Axilor Technologies Fund, Foundamental, Arali Investments, Unikon Shipping Ventures, and several family offices.
The current fund raise is a part of the larger round that the company intends to close this year at a post-money valuation of over $200 million.
The capital injection is expected to fortify the company's financials and drive expansion efforts, particularly in overseas markets. Wiz Freight aims to use this fund to bolster its operations in Southeast Asia, the Middle East, and the US, with an emphasis on technological advancements in its logistics solutions. The Chennai-headquartered firm plans to extend its footprint into five additional countries, including Saudi Arabia, Vietnam, China, Malaysia, and parts of Europe.
“Wiz Freight is set to double its workforce at the technology and R&D Centre in Chennai, currently home to 200 employees,” Co-founder and Chairman Ramkumar Ramachandran said. “The primary focus is on scaling up the tech platform for enhanced efficiency and more innovations which are already in the pipeline.”
The company is looking to expand in the logistics and warehousing space through small and medium acquisitions, he added.
Wiz Freight raised a Series A funding of Rs 275 crore ($36 million) in March 2022, led by Tiger Global. It had closed a $3.5 million seed round, led by Axilor Ventures, in August 2021.
The company reported a revenue of around Rs 1,325 crore in FY23, a fourfold increase from the previous fiscal, and aims to top the Rs 2,000-crore mark in FY25.
“Our intention is to conserve cash for organic growth initiatives and outline a plan for an IPO in the next 4-5 years,” Govindarajan told VCCircle.
Founded in January 2020 in Chennai by serial entrepreneurs Ramkumar Govindarajan and Ramkumar Ramachandran, Wiz Freight currently has a team of 850 employees spread across 30 locations in India and five overseas. It has established a network of over 200 carriers and vendors, serving a diverse clientele that includes Adani, Mahindra, Tata, Acer, Reckitt, Kraft, and Skechers.
