On-demand shipping startup Parcelled, has raised $5 million in its latest round of funding led by logistics company Delhivery. The raised capital shall be used to make its core technology more cost effective and efficient, and expand it’s footprints across 50 cities in the coming six months.
Notably, this is Delhivery’s second investment within a week. Just a few days back, the Tiger Global backed logistics company, founded by Sahil Barua poured a handsome amount into hyper local delivery startup Opinio, with participation from Sands Capital and Accel Partners, making Opinio’s Series A round amount to $7million.
Parcelled is an on demand courier service which picks and packs items from users’ doorstep and delivers them across the country. The users just have to schedule a suitable pickup time on the website / App and mention the courier pick-up location. Once the request is confirmed, a pickup agent will pack and pick up the item for shipping. Thereafter, users will get end to end tracking and delivery notifications of the item.
Commenting on the investment, Xitij Kothi, CEO at Parcelled said, “There is a lot of untapped potential in this space and a need for a convenient, trustworthy, cost-efficient and fast logistics service.”
To go through the complete profile of Parcelled covered by iamwire, click here.
The sudden surge of logistics startups is directly propelled by the growth in digital commerce. According to India Brand Equity Foundation, the country’s logistics industry was valued at nearly $130 billion in 2012-13. Similarly, Research and Markets forecasts that this avenue would become a $301 billion market by 2020. As per the report, the Indian logistics market is expected to grow at a CAGR of 12.17% by 2020 driven by the growth in the manufacturing, retail, FMCG and e-commerce sectors. India spends around 14.4% of its GDP on logistics and transportation as compared to less than 8% spent by the other developing countries. Likewise, the warehouse market in India is expected to grow at a CAGR of 10% whereas freight forwarding market is expected to grow at a CAGR of 12% till 2020.