Logistics company Rivigo losses more than double to Rs 510 crore

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Published: October 22, 2019 4:29:53 AM

Last week, the firm said it expects to become cash breakeven in FY20.  Already a unicorn, Rivigo is likely to raise another round of funding this fiscal. Sources said the firm is in talks to raise up to $100 million.

Logistics company, Rivigo, industry news, Tofler, industry newsThe company claims its sales have been brisk since its relay-trucking model allows it to reduce transit time considerably, thereby charging a premium from customers.

Logistics company Rivigo has reported a 44.78% jump in revenue to Rs 1,002.59 crore for the year ended March 2019. Net losses, however, more than doubled to Rs 510.36 crore in FY19, compared with losses of Rs 244.95 crore in FY18, according to the company’s RoC filings sourced from business intelligence platform Tofler.

The Gurgaon-based firm, which operates a relay-trucking model, expects to turn profitable in the current financial year as it has been able to keep costs in check, co-founder Gazal Kalra told FE in an interview earlier this year.

The company claims its sales have been brisk since its relay-trucking model allows it to reduce transit time considerably, thereby charging a premium from customers. A relay-trucking model is one where drivers change after every few hundred km through a network of change-over stops, called relay pit-stops, and then get rostered back to their home bases.

Last week, the firm said it expects to become cash breakeven in FY20.  Already a unicorn, Rivigo is likely to raise another round of funding this fiscal. Sources said the firm is in talks to raise up to $100 million.

In July, the firm raised $65 million from Warburg Pincus, SAIF Partners and others. So far, Rivigo has raised close to $280 million.
Rivigo that competes with firms like Delhivery and BlackBuck delivers to about 29,000 pin codes in India and claims to have the largest network coverage.

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