Porter completes divestment of its FMCG modern trade business to COGOS
With this investment, COGOS looks forward to organising and optimising the supply chain in the FMCG sector.
On-demand, intra-city logistics company Porter has announced the divestment of its FMCG modern trade business segment to the tech-logistics startup COGOS Technologies.
"This strategic divestment has been undertaken, realigning Porter's business priorities and strengthening focus on on-spot demand services and technology amelioration," reads the release.
During the pandemic keeping up with the market requirements, Porter diversified its service offerings to cater to the requirements of FMCG companies. The company has reassessed its business priorities and the divestment to COGOS Technologies stands in line with Porter's focus on delivering an exemplary customer experience through technology enablement.
Pankaj Shroff, CFO, Porter said "We have always been at the forefront of assessing and strategizing our decisions to maximize business efficiency. During Covid, we started multiple lines of business, including Modern Trade. After due deliberations, we decided to focus on our core business and found an able alliance with COGOS Technologies for the continuity of the Modern Trade business. We are positive that with COGOS' capabilities and expertise in this segment, the business will scale to new heights."
This move aims at ensuring continuity of the business vertical with COGOS' enterprise-led business model and strengthening Porter's focus on its core business solutions. Porter's Modern Trade servicing team accounts for close to 5% of the total workforce and all the employees have been absorbed based on the business needs of both companies.
Prasad Sreeram, Co-Founder & CEO, COGOS said, "FMCG segment is a very crucial and essential business around the world. While modern trade plays a very vital role in brand visibility and revenue share for the FMCG companies, they have a critical challenge in delivering to modern trade. The penetration of tech logistics in this space has been minimal leading to loss of opportunity and higher costs for FMCG companies and Modern Trade. With this investment, we are looking forward to organising and optimising the supply chain of the sector with our state-of-the-art tech platform and advanced delivery system."
COGOS has been aggressively working towards organising the city-logistics market. With this investment, they further aim at strengthening their platform in order to suit the demand of city logistics. They also aim at expanding their fleet to 50,000 vehicles in order to meet the demand. Post this, COGOS would have the FMCG vertical operations in Delhi, Mumbai, Bangalore, Pune, Chennai, Kolkata, Ahmedabad, and Hyderabad, and will eventually expand this to over 300 cities that they are already present. Specific staff, vendors, partners, and customers involved in this division of Porter will be moving to COGOS now.
Porter is currently present in 15 cities across India and looking at expanding its base by creating newer use cases for its various business verticals including Packers and Movers and On-Spot demand service. The company plans to enter top 35 cities by 2023 with a focus on tier 2 and 3 cities.