Delhi-based logistics startup Rivigo has raised $50 million in Series D funding round led by Warburg Pincus and SAIF Partners, its existing investors. It will value the company at around $1 billion. Rivigo is one of the fastest startups to achieve the unicorn status.
The company had allocated 8,231 Series D compulsorily convertible cumulative preference shares to SAIF Partners India amounting to a total of around $33 million. 4,477 Series D compulsorily convertible cumulative preference shares totalling to about $17 million were allocated to Warburg Pincus arm Spring Canter Investment.
Founded in 2014 by Harvard alumnus Gazal Kalra and IIM Lucknow alumnus Deepak Garg was working with McKinsey & Company before co-founding the venture, Rivigo is a logistics service that uses advanced data analytics, cutting-edge technology to provide delivery services to its clients. It operates over 2100 trucks and has a pan India network across 150 locations.
Till date, Rivigo has raised over $125 million in debt finance and equity. In November 2016, Rivigo raised around $75 million from the private equity firm Warburg Pincus. In March 2017, some undisclosed private sector lending banks infused around $15 million debt finance in the company.
In the Financial Year 2017, its revenue escalated by around 170% but at the same time, losses of around $21.1 million were recorded. Its expenses almost tripled. Increase in workforce and number of trucks are among the primary reasons for rising expenses. Nevertheless, Rivigo is among the very few logistic startups, along with Ecom Express and Delhivery which has acquired quite a few private investments.
Rivigo is working to build its logistics space called Apollo to completely automate its truck operations. It competes with certain logistics startups like Blackbuck, Locus, Locanix, ElasticRun and 4tigo Network Logistics. Last year, after raising $70 million, Blackbuck also raised $23 million in debt financing from InnoVen capital.