Fremont, California-headquartered transportation automation platform LogiNext Solutions has raised $39 million from Tiger Global Management and Steadview Capital. The round values the company at close to $100 million, with the company raising $50 million across multiple rounds to date.
Dhruvil Sanghvi, CEO of LogiNext, confirmed that a few early investors in the company have exited as part of the round, without disclosing the details. With the current round, Sanghvi and co-founder Manisha Raisinghani retain close to 40% shareholding of the company.
Early investor in the company Sanjay Mehta, founding partner at 100X.VC and member of TiE mumbai chapter, confirmed his exit from the company. "In 2015 when we invested in LogiNext, it was poised for accelerated growth. I used to call them Google for shipments and they have been true to their business plans. Being on board of LogiNext was a memorable experience, building the company from scratch to the current scale," Mehta told TechCircle.
“Steadview Capital has a strong mandate on Indian SaaS (Software as a Service) companies selling globally along with Tiger Global. Considering US and EMEA (Europe, Middle East and Africa) are our primary markets, we wanted investors on board who understood the geography,” Sanghvi told TechCircle.
Founded in 2014, LogiNext had previously raised $10 million from fintech company Paytm and etailer Alibaba in September 2015. The company, which briefly ventured into the last mile delivery space with the acquisition of YourGuy, has since moved to a SaaS model for enterprise and small and medium businesses.
“Our platform is suited for high frequency shipping where the order values are lower. In the US we are focused on the supermarket and retail space and do not work with heavy duty goods yet,” said Sanghvi. He added that the SaaS platform helps traditional companies increase efficiencies through automation. The company counts McDonalds, Decathlon and Singapore Post as its marquee clients.
With the current round, LogiNext will also make two acquisitions in the space for the client base and technology team capabilities said Sanghvi without disclosing details. The company was in talks with field force digitisation platform FieldEZ last year for a possible acquisition.
The company works with 50 enterprise customers that contribute to a major share of the revenues. It also works with 100 SMBs, providing them with automated order management, predictive capacity planning, real-time route optimization, dispatch automation and analytics.
“LogiNext stands out as substantially different from its competitors because of the lightning-fast customer adoption of its technology, global market traction, and fast-paced team culture,” Puneet Kumar, vice president at Steadview Capital in a statement issued by the company said.
SaaS play in the logistics and transportation sector has seen big-ticket investments of late. In March 2019, Tiger Global along with Falcon Edge backed logistics management solution company Locus with $26 million Recently, Info Edge backed SaaS logistics firm Shipsy in an early-round.