Delhi based Santa Claus Couriers that runs e-commerce logistics company Chhotu.in, has raised an undisclosed amount of funding from Global Super Angels. In order to know more about the deal, iamwire exclusively interacted with Navneet Singh, Co-Founder & CEO, Chhotu.in. Speaking about the allocation of the raised fund, Singh said that we will use it to increase our serviceable reach and expand our offering to warehousing and packaging. Below is the major part of interaction.
According to some reports, chhotu.in has raised undisclosed amount of fund from Global Super Angels. Please throw some light.
I can confirm that we have received angel funding from the Global Superangels, a forum put together by Rajesh Sawhney. The amount is undisclosed.
Where this fund will be strategically allocated and how it would be utilized?
We will use it to increase our serviceable reach and expand our offering to warehousing and packaging. We will also continue to build solid technology framework.
What are the present challenges you see in logistics space and how do you foresee logistics transformation in India by end of this year?
We are doing fairly well in the areas we are serving. Our current challenge is to scale up to increase our coverage and provide a more holistic solution. Indian eCommerce market is still in its early stages. Some of the companies have taken a more aggressive step to build their own logistics. I think it is too early for them as they have yet to figure out a sustainable business model. Building a large logistics network won’t make sense for shipping few thousand shipments per day compared to China where large players ship more than a hundred thousand shipments per day.
What is your take on COD, which caught up very fast in Indian eco-system and in what ways it is difficult at both ends – Logistic player and ecommerce venture?
COD fueled the ecommerce growth substantially. This has been a global phenomenon. It is working at scale in China where online payment penetration is low and is constituting a large percentage in Arab countries like Saudi Arabia where despite the higher credit card penetration, trust is low. So, there are cases where it helped the market to grow but it has been hurting eCommerce companies everywhere as one observes higher returns exacerbated by increased shipping cost on returns. We are trying to innovate with payments which can be an alternative to COD.
There has been a trend amongst the largest e-tailers to have their own logistics – in your views what led them to involve in such investment prone back-end services?
Indian logistics infrastructure wasn’t ready for eCommerce growth. In other words, the infrastructure neither support quick deliveries of smaller packages within cities nor do they have technology around it. This forced the e-tailers to think of alternatives. We are solving this problem so that eCommerce companies can focus more on technology, sales, marketing and solid vendor management.
Category : Investments News