LetsTransport, a Logistics Startup raises Rs 10 crore amidst the pandemic

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A Bengaluru based firm, LetsTransport provides urban logistics solutions to enterprises by offering tech-enabled intra-regional logistics services, has raised Rs 10 crores from venture debt company Blacksoil Capital. Similarly, InnoVen Capital has also announced an investment of Rs 13 crore in LetsTransport.

LetsTransport assists clients to book commercial trucks and handles bookings for a distance of up to 300 km. The startup operates in 15 cities in India and has a registered trucker supply of over 60,000 drivers. This startup was found in 2015 by IIT-Kharagpur alumni, Pushkar Singh, Sudarshan Ravi, and Ankit Parasher. They provide logistics solutions across industries like organized retail, FMCG, and e-commerce and some of its major clients include Amazon, Flipkart, Bisleri, Vishal Mega Mart, Future Supply Chain, Coca-Cola, Delhivery, and Udaan. Similarly, in 2018, LetsTransport had raised Rs 100 crores as part of Series-B funding round from Bertelsmann India Investments and Fosun International. The startup also acqui-hired web and mobile app development startup Pixlcoders in starting of this quarter.

The pandemic has created tremors globally and all sectors are deeply affected and those businesses who are willing to transform themselves according to the need of the hour can recoup the damages made. Ankur Bansal, co-founder, and director of Blacksoil says that they are confident and believe that this tech will help in revolutionizing the current logistics setup. Blacksoil has always been supporting startups with high growth potential and claims to have given out more than Rs 400 crore to over 40 startups, since its commencement. InnoVen Capital has supported over 180 startups such as Swiggy, BYJU’S, OYO Rooms, Curefit, Myntra, Eruditus, DailyHunt, and FirstCry.

Lately, it is being noticed that startups are directing towards venture debt means, to finance working capital and increase their operational efficiency, as equity funding may seem burdensome on the onset of the pandemic crisis.

Venture debt, better known as venture lending, means a variety of debt financing products offered to early and growth-stage startups or venture capital-backed companies. It is usually provided by technology banks and dedicated venture capitalists. In general, a venture debt consists of a three to four-year term loan or equipment lease. Venture debt organized suitably can be an attractive financing option for the following purposes:

·        Adds on the growth of the firm as it provides capital with minimal dilution of equity rights.

·        Strengthens balance sheets with enhanced liquidity.

·        Increased valuation as it bridges to the next round of financing at a higher valuation.

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