FastBeetle Logistics Pvt. Ltd, a Jammu and Kashmir-based tech start-up focused on last-mile logistics in the Union Territory, has raised an undisclosed amount at $3 a million valuation in a Pre-Series A round led by Jaipur-based angel investors KM Trans Group. Alsisar Impact acted as the advisor on the transaction.
The startup, co-founded in 2019 by childhood friends Sheikh Samiullah and Abid Rashid Lone and incubated by Mumbai-based Alsisar Impact, is aiming to disrupt the conventional delivery sector in J&K and making inroads into e-commerce.
Locally referred to as Beetles, FastBeetle Logistics has a strong network of warehouses and delivery centres across major districts of J&K, including recent expansion into the Union Territory of Ladakh.
“This fund raising is another milestone and our mission is to provide a world-class experience to customers and partners while generating long-term value for stakeholders. Our investments in the Himalayan region have the potential for significant social and economic impact. For example, this fund raising will provide confidence to local entrepreneurs as well as to budding entrepreneurs who have been suffering due to many hurdles. The outside investment for a local startup is also encouraging for the overall Kashmir business setup,” Samiullah told Moneycontrol.
The fundraising comes at a time when the Indian startup ecosystem has been hit hard by a capital crunch.
Tech solutions
“We will invest in advanced technology solutions—AI (Artificial Intelligence), machine learning, and data analytics to improve operations, hiring, route planning, and tracking,” Lone said. “This funding will also help in geographical expansion, strengthen supply chain partnerships, and enhance solutions for D2C (Direct To Consumer) brands like offering same-day and next day delivery by integrating better with warehouses, transporters and third-party warehouse management systems,” Lone said.
KMT’s Amit Chandwar, according to the FastBeetle statement, said: “We are delighted to announce our partnership with FastBeetle and eagerly anticipate witnessing their journey as they strive to establish a technology-driven logistics network in J&K, an accomplishment that has eluded many major players in the field. The startup's significant contribution to the state's economic growth fills us with immense pride.”
The company claimed that FastBeetle offered enterprise users a streamlined order management platform, utilising proprietary algorithms like real-time order clubbing and dynamic batching.
“This optimisation reduces lead times and improves first-time delivery success, minimising the need for multiple attempts and returns. By minimising delivery failures, startups help businesses save costs associated with RTO (Return to Origin).”
With a robust logistics network, the company offers services across 19,000 PIN Codes in India and internationally, handling over 300,000 shipments monthly.
“We are partnering with over 1,500 micro-entrepreneurs and SMEs (Small and Medium Enterprises), including women-led businesses; it fosters entrepreneurship and drives economic growth in underserved areas,” said Samiullah.
Sunny Gupta, FastBeetle’s strategy and partnership head, claimed that the company had demonstrated exceptional financial performance, achieving profitability in a short duration. “By prioritising profitability as a core metric, we have established itself as a robust and sustainable venture, attracting the attention of investors seeking long-term value,” Gupta said.
In January, FastBeetle became the first Kashmiri business to pitch for funding on Shark Tank India, the business reality television series on SonyLIV, and a franchise of the famous American show Shark Tank.
Family and friends first investors
The four-year-old logistics and courier company from J&K raised Rs 90 lakh in Season 2 of the reality show.
Like other startups in India, FastBeetle too started its operations with the help of financing from family and friends. Within a short span of time, it emerged as a fast-growing logistics tech platform in J&K and Ladakh.
The company, according to the founders, has already raised a couple of rounds of investments from angel investors and high net-worth individuals.
In December 2021, the company became the first startup in the Valley to raise $100,000 in a Seed A funding round from angel investors.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
