Warburg Pincus invests $75m in India's Rivigo
Warburg Pincus has invested $75 million for a minority stake in Indian trucking company Rivigo. The transaction marks the GP’s third logistics deal in the country in the past two years.
The capital is expected to scale up service offerings across India and accelerate development of technology and talent. Previous backers include Singapore Post and SAIF Partners, which committed $30 million to the company late last year under the name TrucksFirst.
"We are excited by Rivigo's growth prospects and its potential to disrupt the Indian trucking industry, which is by far the largest segment of logistics in India," Viraj Sawhney, a managing director at Warburg Pincus said in a statement. "The company is delivering a fundamentally superior proposition for customers and truck drivers by deploying a unique operating model, enabled by the smart use of technology and analytics."
Founded in 2014, Rivigo employs a relay operating model which reduces the transit time of trucks by up to 70% compared to typical operators. The company - which aims to be the country's largest logistics provider by 2020 - owns and operates more than 2,000 trucks and has across 150 cities. Clients are targeted across verticals including e-commerce, fast-moving consumables, automotive, retail and pharmaceuticals.
India's logistics industry is experiencing a boom related to the rapid modernization of the country's international supply chain links. This momentum is expected to be supported by a number of government policies including the implementation of a favorable goods and services tax regime as well as the "Make in India" export initiative.
Warburg Pincus's activity in this area has recently included a $125 million investment in supply chain services start-up Stellar Value Chain Solutions and a $120 million round for delivery company Ecom Express. The firm closed its latest global fund last year at a hard cap of $12 billion.
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