Gurgaon-based logistics services provider TrucksFirst Services Pvt. Ltd, which operates Rivigo, has secured $75 million (Rs 500 crore) from private equity firm Warburg Pincus in a Series C round for a minority stake.
Deepak Garg, founder and CEO of Rivigo, said in a statement that the infusion of capital will help the company grow its various service offerings across India and invest in technology and talent.
Rivigo will also leverage Warburg Pincus’ global expertise and network in logistics, he said.
The round comes less than a year after Rivigo raised $30 million (around Rs 200 crore), including a small debt finance portion, in a Series B round of funding from existing investor SAIF Partners and others in December 2015.
The startup had raised Rs 61.8 crore in a Series A round in April 2015 from SAIF Partners, Singapore Post and McKinsey’s travel, transport and logistics director Thomas Netzer.
Rivigo was founded in 2014 by Garg and Gazal Kalra. Garg is an IIT Kanpur and IIM Lucknow alumnus while Kalra is a Stanford University and Harvard University graduate. Both are former McKinsey executives.
The company provides logistics services solutions including full-truck load, part truck-load and cold chain to clients in industries such as e-commerce, consumer goods, automotive, retail and pharmaceuticals. It claims to have reduced the transit time of trucks in India by 50-70% compared to typical truck operators. It owns and operates over 2,000 trucks and has a pan-India network across 150 locations.
The deal adds to Warburg Pincus’ bets in the logistics sector. The PE firm plans to invest $125 million in Stellar Value Chain Solutions Pvt. Ltd, a logistics company founded by Anshuman Singh, who was CEO of Future Group’s supply chain arm.
In June last year, Warburg invested $133 million in e-commerce logistics startup Ecom Express, which was the biggest-ever PE funding in rupee terms in India in the logistics sector and the second-largest in dollar terms.
Warburg plans to exit its investment in logistics company Continental Warehousing Corporation (Nhava Sheva) Ltd. VCCircle reported in July that the Mumbai-based firm had hired two merchant bankers to plan its initial public offering.
Other logistics startups that have received funding this year include Connect India, which raised Rs 6.7 crore from Aavishkaar Venture Management, an investment firm that backs enterprises working in rural areas and those targeting the poor. In April, Singapore's distressed assets fund management firm SSG Capital Management Group agreed to invest up to Rs 580 crore to acquire a 40% stake in Future Supply Chain Solutions Ltd.
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