In order to improve and refine its technology stack, logistics startup WheelsEye has raised $1 million from early-stage venture capital firm Prime Venture Partners. The startup which is still in early stages of development was founded by former Shuttl executives Anshul Mimani and Manish Somani last year.
The Gurugram-based startup is developing a software-as-a-service (SaaS) platform for the logistics industry to enable automation, lower overall costs as well as boost efficiency.
“Logistics is a layered industry, with multiple stakeholders. In India the sector is plagued by many challenges, hence we see a huge opportunity for a technological transformation. Effective prioritization and application of data and technology is what the industry needs. We are passionate about solving these specific issues and are excited about the fund raise,” said Anshul Mimani, co-founder of WheelsEye.
According to recent industry reports, the Indian logistics industry has grown at a compound annual growth rate (CAGR) of 7.8% during the last five years. Another report released by KPMG says that the e-commerce logistics market was USD 460 million in 2016 which is further expected to reach USD 2.2 billion by 2020.
Even with massive potential and growth forecasts, the industry is largely operated manually. There are various challenges the sector currently faces related to infrastructural deficiency, skilled manpower and slow adoption of technology due to lack of awareness.
“Indian startups will have a number of opportunities to succeed in this sector, as it is not a ‘winner takes it all’ market. In Anshul and Manish, we found a passionate and committed founding team that is quick-learning and happy to take on large-scale complex problems, and we’re excited to work with them in this endeavour,” said Shripati Acharya, Managing Partner, Prime Venture Partners.
WheelsEye as a new entrant will face direct competition from Rivigo, Ecom Express and Delhivery who have recorded a strong foothold in the recent past.