Trucking logistics startup Fortigo Network Logistics Pvt. Ltd has raised about Rs 27 crore ($4 million) in a Series A round from existing investors Accel India Management Co. Pvt. Ltd and Infosys co-founder Nandan Nilekani, according to filings with the Registrar of Companies.
In 2015, the Bangalore-based startup had raised about $2 million in seed funding from Accel Partners and Nilekani.
The Mint newspaper, however, put the figure at $10 million (Rs 64 crore). It quoted Fortigo co-founder Vivek Malhotra saying that the fresh capital will be used to expand the company's network of trucks, upgrade its core technology platform and help small- and medium-sized fleet owners to enrol with the Goods and Services Tax Network.
“Fortigo will also look to build out a payments platform for the logistics industry with the funds,” he told the business daily.
An email request for a comment on the development did not elicit any immediate response from Fortigo.
Founded in late 2015 by former Headstrong executives Malhotra and Anjani Mandal, Fortigo provides fleet management services for truck owners. The company helps its logistics partners manage and track their inventory more efficiently and save costs. The company currently has about 6,500 trucks on its platform and is planning to scale up rapidly to accommodate “close to 50,000 trucks by sometime next year”.
The sector has witnessed significant investor interest in the past five years and several players have emerged in this space.
In March, Tiger Global-backed Zinka Logistics Solutions Pvt. Ltd, which operates business-to-business logistics startup BlackBuck, had raised $70 million in a Series C funding round led by Sands Capital. Existing investors Accel Partners and Flipkart had also participated in the round.
In November 2016, Rivigo, a Gurgaon-based logistics services provider operated by TrucksFirst Services Pvt. Ltd, had secured $75 million from private equity firm Warburg Pincus in a Series C round.
Nilekani typically puts in $1-2 million in each startup he backs. He has invested in aerospace startup Team Indus, telecom startup Mubble, publishing startup Juggernaut, and online fundraising platform LetsVenture, among others. The key architect of the government’s Aadhaar project, Nilekani has also contested Lok Sabha elections and is an active philanthropist.