Logistics startup WeelseEye raises $1 million from Prime Ventures
The logistics startup plans to use the funding to improve and refine its technology stack, which is still in early stages of development.
August 30, 2018 / 05:56 PM IST
Logistics startup WheelsEye has raised USD 1 million from early-stage venture capital firm Prime Venture Partners to improve and refine its technology stack, which is still in early stages of development.
WheelsEye was founded last year by Anshul Mimani and Manish Somani, who are former executives of bus aggregation platform Shuttl. The two founders are building a software-as-a-service (SaaS) platform for the logistics industry to enable automation, lower overall cost, and boost efficiency.
“Logistics is a layered industry, with multiple stakeholders. In India, the sector is plagued by many challenges, hence we see a huge opportunity for a technological transformation. Effective prioritisation and application of data and technology is what the industry needs,” Anshul Mimani said in a statement.
According to industry reports, the Indian logistics industry has grown at a compound annual growth rate (CAGR) of 7.8% during the last five years. The sector also provides employment to more than 22 million people but is largely operated manually.
"There are various challenges the sector currently faces related to infrastructural deficiency, skilled manpower and slow adoption of technology. There is a lack of awareness in the logistics sector about the economic benefits of using digital technology which is leading to operational inefficiencies and poor asset utilization," the company said.
Other logistics-tech firms, which are direct competitors of WheelsEye, such as Rivigo, Ecom Express and Delhivery have also attracted a lot of interest from private investors and have recorded strong growth in the recent past.
The e-commerce logistics market stood at USD 460 million in 2016 and is expected to reach USD 2.2 billion by 2020, according to a report by KPMG.