With $100 mil­lion, Rivigo Looks to Go Peer­less Places

The Economic Times - - Disruption: Startups & Tech - Biswarup.Gooptu @times­group.com

New Delhi: Sur­face trans­port lo­gis­tics ser­vices provider Rivigo is gear­ing up to spend be­tween $80 mil­lion and $100 mil­lion in the new fis­cal, as the SAIF Part­ners-backed ven­ture looks to out­dis­tance its peers by ex­pand­ing at a rapid pace. Founded by IIT Kan­pur and IIM Luc­know alum­nus Deepak Garg and Stan­ford Grad­u­ate School of Busi­ness and Har­vard Kennedy School of Govern­ment alum­nus Gazal Kalra, the 15-month-old startup will be in­creas­ing its net­work of pro­cess­ing cen­tres and truck­ing pit-stops, while also grow­ing its cold-chain busi­ness — Rivigo Green. “We are very fo­cused on de­liv­er­ing high qual­ity ser­vice to our cus­tomers. In the B2B seg­ment, re­li­a­bil­ity is of para­mount im­por­tance. We want to change the way cus­tomers think about pro­cure­ment and lo­gis­tics. It should shape the busi­ness strate­gies of com­pa­nies,” Garg, CEO of Rivigo, told ET. The com­pany, which counts a num­ber of multi­na­tional and do­mes­tic con­glom­er­ates such as Nes­tle, Hin­dus­tan Unilever and Havells among its clien­tele, com­petes with a num­ber of es­tab­lished lo­gis­tics play­ers such as GATI, Blue Dart and TCI Group among oth­ers, as well as newer en­trants in the space such as Tiger Global-backed Black­Buck.

It serves the ecom­merce, auto, agri­cul­ture and fast mov­ing consumer goods sec­tors among oth­ers. Ac­cord­ing to Garg, Rivigo will ramp up its cur­rent net­work of 41 truck­ing pit stops, and a sim­i­lar num­ber of pro­cess­ing cen­tres, to over 200 across the country over the next 12 months. It also ex­pects to ex­pand its truck­ing fleet size from its cur­rent 800, to be­tween 2,500 and 3,000 over the same pe­riod.

“We are com­pletely shift­ing away from the way things have worked for so many decades. Once you make that shift, you have to also prove the model for the en­tire ecosys­tem,” Garg said.

Un­like its ven­ture-funded ri­val, Black­Buck, which works on an ag­gre­ga­tor model, Rivigo owns the ma­jor­ity of its truck fleet, with a small por­tion con­trib­uted by ag­gre­ga­tors. The com­pany, how­ever, will con­tinue to own its fleet for the fore­see­able fu­ture.

“We were the largest buy­ers of trucks last year, and have been this year as well… Till the ex­tent we can es­tab­lish and grow the ecosys­tem to a level, where we are con­fi­dent that the same level of ser­vice can be achieved through the ag­gre­ga­tion model, we will scale that,” he said.

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