Bengaluru-based Diptab Ventures Pvt. Ltd, which operates tech-enabled logistics startup LetsTransport, has raised $4 million (around Rs 27.2 crore) in its second round of funding, a top company executive told Techcircle.in.
GMO Venture Partners, Neelesh Bhatnagar of NB Ventures and existing investor Rebright Partners have invested in this round, said Pushkar Singh, co-founder of LetsTransport.
The firm plans to use the funds to build technology and expand the team, Singh said.
Founded in April 2015, LetsTransport operates in seven cities—Bengaluru, Delhi, Chennai, Mumbai, Hyderabad, Vijaywada and Tiruchirapalli.
The startup plans to expand to 11 cities, including tier 1 and 2 cities, by the end of this calendar year.
It offers intra-city logistics services for both business-to-business (B2B) and business to consumer (B2C) needs.
"The team with relevant industry experience has deep business understanding. Products developed from these insights are parallel to other global startups in this space. Its full-stack technology products have the potential to disrupt the logistics industry," Ryu Muramatsu, founding partner of Japan's GMO Venture Partners, said in a statement.
In June 2014, LetsTransport had acquired Shifter, a similar venture which connects mini-truck owners, for an undisclosed amount.
LetsTransport was founded by IIT Kharagpur graduates Pushkar Singh, Sudarshan Ravi and Ankit Parasher. The startup serves clients in food, retail and distribution sectors.
In August 2015, it had raised $1.3 million in a funding round led by Japanese venture capital firm Rebright Partners.
The logistics space in India has seen some big-ticket investments in the recent past.
Earlier this month, Mumbai- and Silicon Valley-based Roambee Services India Pvt. Ltd, which runs logistics solutions provider Roambee, raised $4.1 million in a Series B round of funding.
In November last year, Gurgaon-based logistics services provider TrucksFirst Services Pvt. Ltd, which operates Rivigo, had secured $75 million (Rs 500 crore) from private equity firm Warburg Pincus in a Series C round in return for a minority stake.
In June last year, Warburg Pincus invested $133 million in e-commerce logistics startup Ecom Express, which is the biggest-ever PE funding in rupee terms in India in the logistics sector and the second-largest in dollar terms.
Other logistics startups that received funding last year include Connect India, which raised Rs 6.7 crore from Aavishkaar Venture Management. In April, Singapore's distressed assets fund management firm SSG Capital Management Group agreed to invest up to Rs 580 crore to acquire a 40% stake in Future Supply Chain Solutions Ltd.