Five things you need to know about LogiNext, beyond its new $39 mn fund
January 30, 2020: The transportation automation platform headquartered in Fremont, CA with its R&D offices in Mumbai, LogiNext solutions received an investment of $39mn from US-based marquee investors Tiger Global Management and Steadview Capital in January 2020.
January 30, 2020: The transportation automation platform headquartered in Fremont, CA with its R&D offices in Mumbai, LogiNext solutions received an investment of $39 million from US-based marquee investors Tiger Global Management and Steadview Capital in January 2020.
This Series B investment is its 3rd investment round in the last 3 years preceded by the $ 10 million of Series A investment led by Paytm and Alibaba in 2016. This brings LogiNext’s total investment amount close to $50 million to date.
Dhruvil Sanghvi, CEO, LogiNext said “In the global trend of transportation and e-commerce, we believe that we have got the right timing. End customers, be it consumers or businesses, are expecting things to reach them faster than ever and our technology platform can help enterprises do just that. We believe we have built the right team and the right business model to help us scale to the next level from here.”
Copious amount of focus on R&D, unrivaled growth, cutting edge technology product & the perfect timing, living by these principles, LogiNext is thrilled to announce it's Series B funding - highest ever amount in this industry by the much-coveted Tiger Global & Steadview Capital. pic.twitter.com/ZE6dBk5K8A— LogiNext (@LogiNext) January 24, 2020
Let us take a look into five things you should know about this logistics startup.
1. AI-backed SaaS of LogiNext
LogiNext offers transportation Software-as-a-Service (SaaS) with its end to end logistics management platform backed by artificial intelligence (AI) algorithms. LogiNext’s platform enables automated order management, predictive capacity planning, real-time route optimization, dispatch automation, transparent customer experience and post-delivery processing and analytics of B2B transportation or B2C delivery business for more than 50 enterprises and around 100 small companies. LogiNext’s proprietary technology reduces manual intervention while running on-ground operations and automates the decision making in order to save close to 20 percent of the cost by increasing productivity.
2. Customers of LogiNext
LogiNext has been EBITDA profitable since last quarter and has been growing by 200% every year. In the span of 3 years, LogiNext has helped deliver over a billion shipments and daily reaches out to 50 million end customers. McDonalds, Decathlon and Singapore Post are some of its customers, apart from 10-Fortune 500 customers. The company also claims to be in advanced stages of implementation with 30 other Fortune 500 companies.
3. Global presence of LogiNext
While LogiNext’s user base is spread across 20 countries, its team is spread across 8 cities including Fremont, Dubai, Delhi, Kuala Lumpur, Singapore and Jakarta as of now with plans to expand their presence to New York, London, and Sydney. Alongside commencing operations at new locations, LogiNext also plans to double the workforce, especially in customer success and research & development teams.
4. LogiNext and its competitors
Following current trends, customer experience has taken over price and product as the key brand differentiator. Over the last three years, most of LogiNext’s revenues have come from Asia-Pacific, Europe and the Americas which is where the company wants to focus on with the investment proceeds.
“In the fierce competition for making sense out of huge amounts of location data, LogiNext has already taken the lead and created the product which helps customers massively slash logistics costs and automate the complex logistics operations. Our customer’s testimonials speak to that and with this investment we are looking to build an even superior product which will help our customers differentiate from their competitors. We would like to expend a copious amount of focus into R&D and continue to spearhead innovations in this category”, said Manisha Raisighani, CTO, LogiNext.
5. Future plans of LogiNext
Valued at nearly US$100mn, LogiNext is contemplating the acquisition of two vendors in its space and already giving a tough time to the likes of Oracle, JDA Software and Verizon Connect. In 2020, LogiNext is set to make waves in its core industries including third-party logistics, quick service restaurants, courier express parcels, supermarket chains and retail and with its capital-efficient culture, short go-to-market time and aggressive team, it is sure to attain its goal.
Also: Learn about the investors of LogiNext
Tiger Global’s bet on India
After reaping heavy returns from the sale of its Flipkart shares to Walmart, Tiger Global Management is bullish about its investment thesis in Indian companies going global. LogiNext is said to be on the top of the list for Tiger Global’s SaaS investments after Freshworks. Some of the top public investments of Tiger Global Management include Adobe, Microsoft, Netflix, Spotify, JD.com and Amazon.com.
The startup financier: Steadview Capital
On the other hand, Ravi Mehta’s Steadview Capital has been picking up stake in all the top-notch startups of India starting from Ola to Urbanclap and Chargebee amongst many others. “We are very excited by Dhruvil’s vision to transform the global logistics market through cutting edge technology products. Loginext has built a strong presence in the large global customers in the last 18 months and continues to grow at breakneck speed,” said Ravi Mehta, MD & founder, Steadview Capital.