Logistics services start-up COGOS Technologies on Tuesday said it has raised a total of USD 2 million (around Rs 15 crore) in pre-Series-A funding, to expand the business and strengthen its technology platform.
The funding round was led by Dubai-based global shipping and logistics player Transworld Group and New York-based deeptech fund Worldquant Ventures, and includes other investors, COGOS said in a statement.
COGOS also announced that Transworld Group”s Ritesh S Ramakrishnan will be joining its board.
In its seed funding round, COGOS had raised USD 1 million (around Rs 7 crore) from the Indian Angel Network (IAN), Emergent Ventures and some high-net-worth individuals.
COGOS co-founder and CEO Prasad Sreeram said, “We are happy to have global logistic players and deeptech VCs (venture capitalists) believing in the potential of COGOS platform.”
Sreeram added that going forward, the company will continue to provide customised solutions to its partners and push itself to further provide the best experience to the clients with its technology-driven platform.
The company said that with this fundraising, COGOS plans to expand its business to the internal market and further strengthen and develop its technology platform.
It also aims to further upgrade the model and expand the business both in India and overseas – providing customised tech solutions to its partners, it said.
As per research reports, the estimated size of the Indian logistics market is pegged at USD 215 billion and is growing at a compound annual growth rate (CAGR) of 10.5 per cent, contributing majorly to the growing GDP of the country, COGOS said in the statement.
With rural India opening to the concept of e-commerce, it will be crucial for the logistic business players to address upcoming challenges and ensure building an infrastructure for the business that can expand even to the remote areas, it said.
“Technology is changing the way logistics services are being consumed, and we are excited to partner with COGOS to provide technology-enabled logistics services to clients and build a scalable and sustainable global business,” said Chetan Mehta, CEO of Wami Capital, the single-family office of Transworld Group.
“We are very bullish on the India growth story which is led by both consumption and innovation,” he said.
Logistics in India is an over USD 300-billion market and is highly fragmented and unorganised, and the company sees a huge growth opportunity in the Indian logistics space, especially in the tier-3 and tier-4 cities which are underserved today, Mehta added.
In June, COGOS had announced that it will augment its fleet by 2,500 electric vehicles (EVs) across Bengaluru, Hyderabad, Delhi and Gujarat, and later in Maharashtra and Tamil Nadu as part of its plan to go green.
“We see COGOS evolving as a major player in the first, mid- and last-mile delivery for enterprises in India. Their AI logistics platform will also have a significant ESG (environment, social and governance) impact, as they integrate EV adoption into the delivery process.
“We are very excited to be involved early and help them grow into a global platform,” Worldquant Ventures Managing Director Steven Lau was quoted as saying in the statement.
Founded in 2016 by serial entrepreneurs Prasad Sreeram and Dr Rama Mohan Katta, a player in the city logistics space, COGOS currently operates across 300 cities in the country.
Categories: Venture Capital