Diptab Ventures Pvt. Ltd, which operates LetsTransport, a logistics marketplace for intra-city deliveries, has raised $12 million (Rs 100 crore) in a Series B funding round from Bertelsmann India Investments and Fosun International.
Bengaluru-based LetsTransport, which counts Rebright Partners, NB Ventures, GMO Venture Partners and Mistui Sumitomo Insurance Venture Capital among its investors, has raised a total of $18.3 million in three funding rounds so far, including this round.
The start-up plans to utilize the fresh capital to strengthen technology, add new industry verticals, and bolster operations.
“We see ourselves expanding to more than 20 cities by the end of the year and our new products will help us in disrupting the industry,” said LetsTransport founder and chief executive officer Pushkar Singh.
LetsTransport competes with logistics start-ups such as Rivigo Services Pvt. Ltd, BlackBuck (Zinga Logistics Solutions Pvt. Ltd) and Fortigo Network Logistics Pvt. Ltd.
Investors have been pumping money into such start-ups, including BlackBuck and Rivigo, which are also in talks to raise funds at higher valuations.
Others, such as Shadowfax, Moglix and GoBolt, have also raised capital this year.
Rivigo, the highest-valued logistics start-up in India at $950 million, is in talks to raise up to $400 million, Mint reported in September.
LetsTransport, which was founded in 2015, enables last-mile delivery through its network of mini trucks in seven cities. It provides services to industries including fast moving consumer goods, e-commerce and retail.
LetsTransport operates an asset-light model with a multi-modal network of trucks that helps bring operational efficiency for truck owners. It claims higher earnings for truck drivers and a 30% reduction in distribution costs for clients.
The three-year-old company has a network of around 20,000 truckers across Bengaluru, New Delhi, Chennai, Mumbai, Hyderabad, Pune and Vijayawada.
Its clientele includes companies such as Coca-Cola, Amazon, Metro Cash & Carry, and Big Bazaar.
The start-up, founded by Singh, Sudarshan Ravi and Ankit Parasher, posted a revenue of Rs 50 crore in the last financial year. It aims to touch ₹125 crore in revenue this financial year.
“By leveraging technologies to solve for fragmentation on the supply-side coupled with strong unit economics, we believe the company is strategically placed to capture the pole position in the market,” said Pankaj Makkar, managing director at Bertelsmann India Investments.
This article was first published on livemint.com