Why Startups And Investors Are Chasing Logistics

Logistics dominated India with flying colours because of the boom of the ecommerce industry in the country. Other companies also made sure to take advantage of the situation such as Tecdis Network which is not only focused on logistics by on providing tech services at the same time. For the case of India, everything started out with business to consumer but the spotlight is once again stolen by logistics as it conquers the business to business landscape.

This is because solutions that are driven by innovation and powered by technology are now in demand. The goal is to chance the logistics as well as supply chain market. Looking at the data, increasing number of investors is already backing up this setup. They have seen the development with the business to business logistics through the growing investments given into the sector.

For the first five months of this year, a capital infusion worth $6.25 billion was already seen among eight different deals. It means that the amount they were able to raise was six times higher compared to the figure of 2018 and the deals were even 20.

For this year’s fund raising which amounted to $6.25 billion, $70 million is to be given to Blackbuck’s Series D which is a trucking marketplace located in Bengaluru. An additional $22 million will be sent to Locus, a startup company that focuses on optimizing the supply chain through Artificial Intelligence.

The managing partner of Stellaris Venture Partners, AlokGoyal, said that B2B is not the same as B2C because the market is not all or nothing. Logistics alone is considered to be a huge market. In fact, there is enough space to house companies that are worth between $10 and $20 billion each. This is one of the reasons why investors find the space to be quite interesting.

While companies such as Tecdis Network are already expert in providing customers with tech logistics services, it is important for a startup to gain a good footing right away. In fact, for the first time in India, a startup was launched with a valuation of over $1 billion.