Rivigo scores $35 Mn from Warburg Pincus and SAIF Partners; still misses unicorn status

Surface logistics startup Rivigo has scooped up around $35.6 million in a fresh funding round led by existing investors Warburg Pincus and SAIF Partners.

According to filings with the Ministry of Corporate Affairs (MCA), the firm has issued compulsory convertible preference shares to the investors. While Warburg pumped in Rs 150 crore, SAIF Partners invested the rest amount in the Gurugram-based company.

The valuation of the company is estimated to be around $947.8 million, reports TechCircle.

This could be a part of a larger round that Rivigo is seeking to raise from the last five months. In January last year, Rivigo had raked in $50 million Series D round led by SAIF with participation of Warburg. The company was then valued around $945 million.

Previously, it had raised $75 million Series C round from the private equity investor in November 2016 at an estimated valuation of $440 million.

One of the few startups in the logistics segment that facilitated ESOPs divestment worth Rs 71 crore to reward 30 employees. Rivigo was floated by former McKinsey consultants Deepak Garg and Gazal Kalra.

Rivigo offers trucking facilities across 10 industries across verticals including apparels, e-commerce, automotive, frozen and processed foods, FMCG and automotive. With a fleet of more than 3,000 trucks, it claims to deliver anywhere from anywhere in India within three days.

Rivigo has three products – Relay Full Truck Load, Express Cargo and Coldchain. This unique driver relay model ensures 50-70 per cent reduction in transit times. It claims to complete Delhi to Guwahati or Delhi to Chennai trips in 3 days against the industry average of 7-8 days.

Started in 2015, the company has so far raised about $205 million in equity and debt from SAIF, Warburg, Trifecta Capital, Kotak Mahindra Bank, HDFC Bank, and YES Bank.

Rivigo closely competes with Blackbuck, GATI, Fortigo and several others.

In the financial year ending on March 31, 2018, the company posted a revenue of Rs 719.85 crore, a 76.4 per cent increase from Rs 408.11 crore in FY17. During the period, it incurred losses Rs 270.23 crore which was almost doubled from the previous fiscal.