Indian logistics start-up aims to raise Rs30 crore in series B funding
February 18, 2015
Bengaluru-based CriticaLog India, a start-up firm engaged in supply-chain management and critical logistics services, is looking to raise around Rs30 crore in a series B funding from new investors. More than a year ago, the company raised series A funds from Switzerland-based private equity investor Logon Investments.
The one-and-a-half year old company provides air express distribution services for domestic and international movement of time sensitive, highly valuable or highly perishable, hazardous and fragile cargo. Its services include pan-India distribution of Swiss watches, luxury goods, automotive and IT spare parts, and pharmaceutical shipments.
"We are now looking to raise around Rs25 to 30 crore from a new set of investors to fund our expansion plans,” said Sujoy Guha, chief executive officer and managing director. “We are in talks with a few investors and will close the deal in the next two to three months."
Having established its presence in the logistics market with its niche delivery model and IT-enabled systems such as track-and-trace software, GPS vehicle locator and movement monitoring, hand-held units for remote data entry, barcode scanning and RFID as well as pin-code assignments to each and every order for delivery, the company is now looking to expand its operations in tier-II cities and overseas markets.
"We believe there is a high potential available for us to cater to every industry segment in terms of movement of critical raw materials in shorter time duration,” said Guha. “Demand for such services is still poorly addressed by the existing logistics players."
In less than two years, the company has reached out to several industry segments and nearly 100 select customers including Bosch, HCL, Wipro, Louis Vuitton, Ethos, Epson and Raymond Weil. CriticaLog is present in 52 locations in the country.
“We have already created a niche position for ourselves in the logistics and supply chain management industry,” said Guha. “Having proved our concept in top cities in the country, we are now setting out on an expansion plan that includes reaching out to several other cities and also expand in foreign markets.”
The company is planning to expand into markets such as the USA, Europe and Asia. It is in talks with several multi-national companies for inbound cargo movement.
In its series A fund-raising programme, CriticaLog had raised funds in the range of Rs5 to 7 crore from private equity firm Logon Investments for a majority stake. The company aims to generate revenues in the range of Rs200 crore in the next four years, added Guha.