Once hailed as a hot sector, logistics startup has again captured the eye of investors with Bengaluru-based Loadshare raising an undisclosed amount in its first round of funding from venture capital fund Matrix Partners India.
According to the release, the company plans to use the fresh funds to invest in technology, operations and towards hiring new talents.
With the current shipments of 10,000 per day and covering a network of 2000 pin codes, Loadshare aims to ramp up the shipments and cover around 5000 pincodes in a year, cited the release.
Founded by a former Myntra executive Raghuram Talluri, along with Tanmoy Karmakar and Rakib Ahmed in January this year, Loadshare has built a network focusing on small and medium players by helping them with technology and operations know how.
The investor in the company believes that SMEs in India are adopting technology rapidly and SaaS-enabled marketplaces are a great approach to providing value to the Indian SME. Loadshare’s approach to stitch together a network of small courier companies across India by providing them technology is differentiated.
Investment augurs revival
In 2016, logistics sectors observed dwindling funds flows and many shutdowns. According to news reports, as many as six logistics startups, TheKarrier, Truckmandi, Trucksumo, Loadkhoj, Zaicus and Sastabhada, shut down operation in the same year.
However, the year 2017 seems to be a good year for such startups. India has been ranked second only to China on Emerging Markets Logistics Index, 2017. The index gauges the logistics industry in the world’s 50 leading emerging markets by size, business conditions, and infrastructure and transport connections.This is for the second consecutive year that India has been rated among the most favorable investment destinations across the globe.
With the current funding, the logistics sector hopes to see an infusion of more funds.