2015 sees the Indian Logistics space witness a surge in funding, with $720M raised
According to the Tracxn India Report on the Logistics Tech space, Indian startups within the sector have garnered a lot of traction over the last year, with investors such as Sequoia Capital and Accel Partners, playing an important role in fueling growth for the space in India
Over $800M has been invested in the space since 2011, with 2015, alone, seeing ~$720M raised. This marks a significant rise in the funding amount for the space, over the last year, which saw a total investment of $54M.
This spurt in funding can be attributed to Grofers, which raised $165M during the year, which is more than three times the total funding the sector received in 2014.
Apart from Grofers, the growth in funding during the year came from the fact that there was a significant increase in the number of companies that got funded in 2015, vis-à-vis the previous year, which resulted in the sector seeing a much higher number of funding rounds. Notable rounds during the year include Rivigo’s $30M, Series B raise from SAIF Partners, and BlackBuck’s $25M Series B from Tiger Global, Accel Partners and Flipkart.
The fact of the matter is, that the sector is now seeing much higher valued late-stage rounds, through a greater number of such rounds. The average ticket size for Late Stage rounds has increased in 2015 as compared to 2014, mostly attributed to E-commerce Delivery, Intracity – Shipping and Grocery Delivery sectors while the number of late stage deals has increased drastically from the last year to 21 from just 4.
But despite the surge in funding during 2015 due to late stage deals, early stage rounds still play an important role in fueling the sector, especially in the case of newer segments such as the Food, Grocery and Horizontal – B2B sectors. These sectors formed a large portion of the companies which were founded in 2015, which resulted in the year seeing the highest number of startups being formed.
The year also saw a good number of startups emerging from newer segments such as Freight Transport, Intracity Shipping and Couriers aggregator, and though average deal size for early stage rounds has decreased in 2015 as compared to 2014, we expect early stage deals to continue to be important in helping these startups grow further. Concierge is also another upcoming segment where we expect to see early stage bets happening.
Business Models in Logistics Tech – India
In terms of the business models within the Logistics Tech space, the E-Commerce Delivery segment is the most mature and well-funded.
Note – This report covers tech-enabled companies that operate in logistics space primarily offering delivery solutions for individuals and businesses. It also includes companies that provide software solutions to other logistics company to optimize their delivery operations. This report excludes companies that provide warehouse solutions and offline services.
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