Intra-city logistics startup Blowhorn said on Tuesday it has raised a fresh round of funding from new and existing investors.
New investors who participated in the investment round include Venture Catalysts, impact investor James Lee Sorenson and Japanese venture capital firm Dream Incubator, Blowhorn said in a statement. It didn't disclose the amount it raised.
Existing investors Chiratae Ventures (formerly IDG Venture Partners) and global philanthropic organisation Michael and Susan Dell Foundation also contributed, it added.
The funding round was led by an investor whose name it did not disclose.
The company, owned and operated by Catbus Infolabs Pvt. Ltd, will use the funds for international expansion and boost innovation, it said.
"Our goal is to be active across more than 100 cities across India by 2021, and we are on track to achieving that. We are also in the final stages of executing our first international foray," said Mithun Srivatsa, CEO of Blowhorn. "Our margin profile remains healthy and has grown 30% over the last quarter," he added.
Blowhorn is also actively involved in raising a larger round of funding that is expected to close in the next nine months.
"Our investment rationale was the differentiation that Blowhorn brings to the table by providing full-stack tech solution and at-par service levels, becoming the go-to partner for both corporates and SMEs," said Eto Munehiko, managing director at Dream Incubator India.
Dream Incubator India has made over 20 investments in India in various sectors including health, finance, media and entertainment and mobility. It has bet on e-pharmacy startup Myra, breast cancer screening startup Niramai Health and local discovery platform LBB.
Blowhorn, which was founded in 2014 by Srivatsa and Nikhil Shivaprasad, connects customers with mini-truck owners for intra-city, sub two-tonne deliveries. It says users can keep their consignments within sight using its real-time tracking feature.
The company had raised Rs 25 crore ($3.65 million) in Series A funding from IDG Ventures India, MSDF, Draper Associates and Unitus Seed Fund in March 2017.
Investor interest in the logistics-technology segment has increased in recent months as startups seek to provide new-age services at scale and affordable prices.
Earlier this month, Canada Pension Plan Investment Board (CPPIB) said it had invested $115 million (approximately Rs 825 crore) in logistics unicorn Delhivery Pvt. Ltd. The announcement came about three-and-a-half months after VCCircle reported that CPPIB was planning to invest in Delhivery.
Last month, VCCircle reported that Tiger Global Management, which is also an investor in Delhivery, led an early-stage round of funding in logistics marketplace Cogo Freight. In May, Tiger Global had led a Series B funding round of $22 million (around Rs 196 crore) in Bengaluru-based logistics management startup Locus that uses proprietary algorithms and deep learning to address supply chain challenges.
In July, Rivigo, one of the heavily funded players in the segment, raised additional capital from existing investors Warburg Pincus and SAIF Partners.
In the same month, Singapore-based logistics-technology platform Ezyhaul raised $16 million in its Series B funding round while logistics platform Freight Tiger raised $8 million in a round led by existing investor Lightspeed Venture Partners.