Mumbai-based Cogo Freight Pvt. Ltd, which owns and operates digital freight company Cogoport, has raised Series A funding from venture capital firm Accel Partners.
Cogoport will use the funds to develop new products and expand its business in India and other countries, it said in a statement on Tuesday.
The startup didn't disclose the amount of funding it raised. However, a person close to the development told VCCircle, on the condition of anonymity, that the amount is close to Rs 40 crore ($6.2 million).
Cogoport started operations in February 2017. According to a June 2017 report in The Economic Times, Cogoport had raised angel funding of $950,000 from a high-net-worth individual based in Singapore.
Purnendu Shekhar, founder and chief executive of Cogoport, said in the statement that the company follows a “customer-centric approach” and that this funding round will help the company expand globally.
Shekhar Kirani, managing partner at Accel Partners, said in the statement the Cogoport team has deep domain experience, strong technology background and financial expertise. The team has “all the ingredients for targeting the sizeable global market”, Kirani said.
Cogoport provides global freight services for importers and exporters covering warehouse-to-warehouse transportation. The company said that it is in the process of expanding its team globally amid efforts to meet demand, with more than 400 enterprises wait-listed to start transactions. It claims to have over 3,000 customers using its platform.
The tech-enabled logistics segment has witnessed considerable funding activity over the past year.
Earlier this year, VCCircle reported that Gurgaon-based tech-enabled logistics services provider Rivigo Services Pvt. Ltd had raised Rs 322.5 crore ($50 million) in a Series D round, which saw its valuation soar to near-Unicorn levels.
Peers such as Ecom Express and Delhivery have attracted private investment primarily because of their capabilities of disrupting the logistics business in India either through the use of technology or via specialised offerings such as delivery services for e-commerce as a sector.
US-based Accel Partners, which had raised $450 million for its fifth Indian VC fund in December 2016, was among the most active venture capital firms in 2017. It struck 21 deals last year, including 13 follow-ons. Its portfolio firms include jewellery e-tailer Bluestone and tutoring startup Vedantu.
In January, BrowserStack, a web and mobile browser testing platform, raised $50 million (about Rs 318 crore) in a Series A round from Accel Partners.