Logistics startup Ripplr to raise Rs 400 crore in fresh round from SBI, existing investors

Abhishek Nehru (L), and Santosh Dabke (R), co-founders, Ripplr

Ripplr, the distribution and logistics startup, is in the advanced stages of raising Rs 400 crore (around $45 million) in a fresh round from State Bank of India (SBI), people familiar with the developments told Moneycontrol. SBI has invested money in exchange for equity in the company, a rare move by the country's largest lender, especially in the startup sector.

Its existing shareholders, such as 3one4 capital, Zephyr Peacock, Sojitz Corporation, Fireside Ventures and Northern Arc, are also likely to participate in the round, they added.

What is the construct of Ripplr’s latest funding round? 

Of the $45 million, around $30-32 million will be in the form of primary capital, which will go directly into the coffers of the company. Another $10 million or so will be in the form of secondary share sales where some early investors dilute their stake to make way for new backers.

The remaining $3-5 million will be a debt component which Ripplr will use for working capital requirements, as per sources.

Ripplr and SBI did not reply to Moneycontrol’s queries.

What is Ripplr’s valuation after the current round?

The Bengaluru-based firm is being valued at around $230-250 million (Rs 2,000-2,200 crore) during the ongoing negotiations. The company was valued at around $100 million (Rs 880 crore) during its last round in 2023. 

What will Ripplr use the funds for?
Ripplr, which primarily focuses on fast-moving-consumer goods (FMCG) distribution, will use the funds to expand its network and scale in size.

The company will focus largely on its electronics distribution business and also open more micro fulfillment centres (MFCs). Ripplr currently has six MFCs.

What does Ripplr do and who started the company? 

Set up in 2019 by Abhishek Nehru and Santosh Dabke, Ripplr is a plug-and-play integrated distribution network which offers distribution as a service (DaaS) to brands. It helps them in creating visibility and enhances their reach.

The company has, so far, raised over $90 million, as per Tracxn, a private markets data provider.