Rivigo is Turning into a Unicorn After Valuing $1.05 Billion

The logistics firm has become the eight unicorn to have entitled a unicorn in 2019.
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • Sep 27,2019
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  • 9 Mins Read

The Indian startup ecosystem is rapidly growing in the current year as it has borne almost half of dozens of unicorns. Recently, a trucking logistics company, Rivigo has joined the league by scoring more than $1 billion at valuation. 

The logistics firm has become the eight unicorn to have entitled a unicorn in 2019. Its valuation has increased after receiving $4.9 million funds from South Korea-based fund, KB Platform fund, the daily news, Mint reported citing regulatory filings with the Ministry of Corporate Affairs.  

After receiving funds, the logistics firm is now valued at $1.05 billion. In February this year, its valuation was $950 million after amassing $50 million from investment companies, Warburg Pincus and SAIF Partners. 

Rivigo Booming with Its Relay Trucking Business Model 

According to the cited media report, Rivigo has been trying to raise funds for a long time. In September 2018, the company was in discussions with investors to raise $ 400 million. 

However, the talks did not pave the way for fundraising. Later, in July this year, existing investment companies, Warburg and SAIF infused $65 million in the logistics firm, Rivigo. 

The logistics firm, which was incorporated in 2014, is based in Gurugram, Haryana. It runs the firm on relay trucking business model, in which a truck keeps moving throughout the journey. In this relay trucking model, the truck driver gives the truck to another driver at a decided stop. 

Another positive of this model is that the truck drivers do not work more than four to five hours at a period and thus, reach their home in less than a day. Furthermore, the company has a freight marketplace.

The company offers trucking facilities in ten industries across segments such as e-commerce, automotive, apparels, and FMCG. It has a convoy of over 3,000 trucks at present. It asserts that it can deliver products at any corner of India within three days. 

Besides the traditional firms, the logistics company contends with BlackBuck. BlackBuck has a valuation of nearly $951 million. It is also trying to enter the unicorn club. 

Other Companies in Unicorn Club This Year 

Gurugram-headquartered logistics has turned into a unicorn at the time when the unicorn club is surging immensely. 

Other unicorn companies which have entered into the unicorn club are Icertis, which runs a contract management software, Delhivery, which administers an e-commerce logistics company, BigBasket, which offers grocery to consumers via its online grocery platform, Druva, which is a software company, Dream11, which is fantasy gaming startup, Ola Electric, which is a subsidiary of cab aggregator, Ola, Citius Tech, which an IT healthcare company. 

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