Reliance Venture Asset Management, Kleiner Perkins Caufield & Byers (KPCB) and Sherpalo Ventures have made an investment in Reverse Logistics Co, a company providing reverse supply chain solutions. The Bangalore-based firm has earlier raised funding from Mumbai Angels.
The deal for the corporate venture capital arm of Reliance ADA Group, formerly Reliance Technology Ventures Ltd, is in line with its recently announced diversified sectoral focus.
Reverse Logistics has raised its first round of funding in which two other venture capital firms Kleiner Perkins Caufield & Byers and Sherpalo Ventures have also invested along with Reliance. Though Reliance Venture’s investment could not be ascertained separately, it is believed the total investment is somewhere between Rs 35-40 crore.
Earlier, RT Outsourcing, a Delhi-based firm in similar space, has raised venture capital funding from New Enterprise Associates (NEA), Motilal Oswal Venture Capital and Sonoma Management Partners.
Reverse Logistics offers backward supply chain network where a product moves from the end consumer to the manufacturer for reuse, disposal or surplus sale purposes, the statement added. It caters companies in consumer electronics, computers, mobile and organised retail space.
Quoting market reports, the statement suggests that the reverse logistics industry in India is pegged at $10-15 billion that includes the secondary market supplying spares and second hand materials. It is also estimated that around 3% of India’s GDP is lost due to supply chain inefficiencies and low compliance with the government’s e-waste regulations.
Harshal J Shah, CEO, Reliance Venture Asset Management, said, in the statement, “The reverse logistics space is a fairly untapped but promising sector, and will revolutionise efficiency levels of the fragmented Indian supply chain. We see an immense potential in the industry which is emerging to be an essential part of the business supply chain network across the manufacturing and services
Some of Reliance Venture’s earlier investments include technology firm Dhama Apparel Innovations, Scalable Display Technologies, Inc and Suvidhaa Infoserve, among others.