Logistics startup Rivigo reportedly in talks to raise capital from Softbank

Rivigo
Image credit: Rivigo

Softbank seems to have turned aggressive as far as investing in India is concerned. After pumping back to back billion rounds in Paytm and Flipkart, the Japanese conglomerate is reportedly talking with logistic firm Rivigo for putting at least $100 million in the Gurugram-based company.

Rivigo offers trucking facilities across major industry verticals such as e-commerce, FMCG, auto, pharma and the cold-chain space.

According to the Economic Times report, if the deal gets through, it could value the Rivigo at nearly $1 billion. Some sources in the report also indicate that the company may raise $200-400 million.

Softbank has been aggressive investor in india and recently ploughed in about 3.8 billion across two bets including Paytm and Flipkart. It recently invested $2.4 billion in Flipkart to become one of the largest shareholders in the Bengaluru-based company.

Rivigo has denied any talks with Softbank for funding. Entrackr queries to Rivigo still remains unanswered.

Of late, Rivigo has been darling for investors and keep raising capital on regular intervals. Last year in November, it raised about $75 million (Rs 500 crore) from private equity firm Warburg Pincus in a Series C round for a minority stake. The company was valued at about $440 million during Series C financing.

Prior to Series C round, the company secured $30 million in a Series B round, with mix of equity and debt financing.

The company also claimed to be the largest buyer of trucks in 2015 and 2016. Rivigo raised debt financing from banks such as Kotak Mahindra Bank, HDFC Bank, YES Bank and Trifecta Capital among others.

Unlike traditional logistics companies, Rivigo’s innovative ‘drivers relay system’ enables it to reach Chennai from Delhi in two days instead of conventional eight days. By drivers relay, the company made sure drivers got back home on the same day (or within 24 hours) and thereby, saved 50-70 per cent of the turn-around time on long-haul routes.

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