One of the largest logistics tech startup WheelsEye has raised an amount of ₹7 crores ($1 million) in an investment round which is led by a premium investors that is Prime Venture Partners, a seed stage venture firm.
The funds raised will be used to refine the product, which is still in the early stages of development.
Gurugram-based WheelsEye was founded by Anshul Mimani and Manish Somani in 2017. This SaaS-based startup is leveraging technology to create smart and flexible transportation automation solutions.
The startup promises minimum guarantee levels for critical support, implementation, training & access to new released features. It uses data-driven decisions to enhance efficiency and lower costs for businesses.
Anshul Mimani, Co-Founder of WheelsEye, said, “Logistics is a layered industry, with multiple stakeholders. Effective prioritisation and application of data and technology will help improve efficiency in the industry.”
Shripati Acharya, a Managing Partner at Prime Venture Partners, said, “There is significant potential for technology to make logistics better and reduce wastage. There will be a number of opportunities to succeed in this sector, as it is not a ‘winner takes it all’ market.”
Other players competing with WheelsEye in logistics tech sector include Bengaluru-based LetsTransport, BlackBuck, Rivigo, among many others.
As per the Economic Survey 2017-18, the Indian logistics market has grown at a compound annual growth rate (CAGR) of 7.8%, to reach $160 million and employing more than 22 million people, during the last five years. It is further expected to grow at a CAGR of 10.8% to reach $215 billion by 2020.
The logistics sector in India largely remains unorganised, plagued by the high cost of logistics impacting competitiveness in the domestic and international market, underdeveloped material handling infrastructure, fragmented warehousing, and lack of seamless movement of goods across types of modes be it also, among others.
With the rise of logistics startups in the country, the situation is improving and is also helping other sectors including agriculture and e-commerce, among others dependent on seamless logistics and infrastructure.