Logistics startup CriticaLog set to raise Rs 150 crore to fuel expansion
CriticaLog India Pvt. Ltd., a provider of critical logistics solutions, is set to raise around Rs 150 crore in Series-A funding from new investors to fund its expansion.
The seven-year-old start-up company has so far raised only seed funding from Switzerland-based LoGon Investments.
CriticaLog provides critical solutions across life, digital goods, engineering, e-com, luxury, automobiles, and energy while providing shipping services, special handling services. With expertise in delivering critical, luxury, and high-value items for several Fortune 500 companies, CriticaLog is now foraying into the B2C segment. It plans to help MSME customers deliver their goods across the country.
“We are present all across the country. We will use our logistics strength to help MSMEs go online,” Sujoy Guha, Chief Executive Officer and Managing Director, CriticaLog, told DH.
The company is setting up a separate business division to help offline businesses go online and deliver their goods across the country, he said.
“We are in talks with investors to raise around Rs 150 crore to fund our expansion plans. We wish to close the deal in the next two to three months,” Guha said.
CriticaLog has built a niche delivery model and tech-enabled systems such as Track & Trace software, GPS vehicle locator and movement monitoring, hand-held units for remote data entry and RFID. It is now looking to strengthen its IT systems further. In the last seven years, it has acquired over 700 clients, including many Fortune 500 companies. Wipro, HCL, Bosch, Louis Vuitton, and Raymond Weil are some of its clients. Recently, CriticaLog also delivered raw materials for pharmaceutical companies and Covid-19 vaccines across the country and even to worn-torn Syria, where no other logistics provider dared to go.
As part of its expansion, CriticaLog plans to service MSME customers to deliver their goods like art, artefacts, IT & ITeS equipment, computers, laptops, and servers, among many others. It plans to hire dedicated delivery staff separately for the last mile.
“To begin with, we will be hiring at least 300 people and add thousands as we go forward to deliver goods across Tier-1 to Tier-4 cities and towns in the country, Guha said.
The company is in advanced discussion with the investment bankers to prepare the information memorandum (IM) ahead of reaching out to potential investors.
CriticaLog is also planning to expand its reach in overseas markets. It has already tested the market by delivering temperature-controlled large consignments in Syria, the US, Europe, North America and Asia.
“We are entering into Express cargo delivery across several countries. We will get into cross-border offline to online business,” Guha said and added that 80% of its customers are MNCs and are getting service in the country.
It plans to deliver engineering goods, high-end precision spare parts for top German and Japanese companies.
With Rs 70 crore in fiscal 2021, CriticaLog aims to double its revenues to Rs 150 crore by March 2022. Over the next five years, it plans to achieve an annual growth rate of 40%.