Paytm-backed Mumbai-based logistics analytics startup LogiNext has teamed up with global technology giant IBM in a partnership aimed at optimising supply chain functions for e-commerce, retail and allied sectors.
”This (partnership) will allow FMCG, e-commerce, retail and transportation companies to optimize their logistics and supply chain from resource, time, distance and cost point of view. At the same time, it allows companies to improve their customer experience with real time visibility across the supply chain”, LogiNext CEO Dhruvil Singhvi told DEALSTREETASIA.
LogiNext will now become pre-integrated with IBM cloud, IBM Order Management, IBM MDM MaaS 360 and IBM Weather Company. LogiNext is also in talks with IBM to use more machine learning APIs of Watson.
Nipun Mehrotra, Chief Digital Officer, IBM India & South Asia, confirmed the development.
Founded in 2014 by Dhruvil Singhvi and Manisha RaiSinghani, LogiNext is a cloud-based logistics and field workforce optimisation company that claims to have 200 enterprise clients spread across 10 countries.
It counts Coca Cola, Grab,Shuttle. LF Logistcis, MGM Bosco, Dominoes, Dow Chemicals among its clients. In September 2015, the company raised a sum of $10 million from early backer Paytm. Till date, it has raised around $10.5 million and is currently in talks to raise its next round as well.
“We are operationally profitable, and plan to achieve net profitability by March 2018,” Dhruvil says.
This partnership comes at a time when large technology giants are partnering startups to expand their reach in newer areas like cloud, mobility and data analytics.
For instance, Amazon has a cloud offering, Amazon Web Services (AWS) which has worked with top startup customers such as Netflix, Airbnb, Lyft, Yelp and others.
The partnership aims to boost logistics and field workforce costs savings by up to 25% across industries. This assumes significance given that logistics costs for most countries range from 15% to 30% of their GDP.
According to the Breakthrough Innovation Report by Neilsen, 2016, to expand in new markets, companies should invest in technology that could streamline their ground-level logistics movement up to localized perfection taking into perspective traffic and weather patterns of the different routes used for deliveries.
Paytm founder Vijay Shekhar Sharma is an investor in Dealstreetasia in his individual capacity.