Logistics-tech unicorn Rivigo has managed to decrease losses and post a marginal rise in total revenue in FY20 on a consolidated basis. The intercity lengthy-haul logistics service provider Rivigo, which is backed by Warburg Pincus, Elevation Capital, other people, reported a 31 per cent decline in net losses from Rs 602.2 crore in FY19 to Rs 412.8 crore in FY20 though income improved 4.1 per cent from 1,028.5 crore to Rs 1,070.7 crore throughout the mentioned period, according to the regulatory filing sourced from company intelligence platform Tofler. Importantly, the business had spent Rs 1,483.5 crore (expenditures) to earn operating income of Rs 1,055.9 crore in FY20 vis-à-vis Rs 1,630.8 crore spent for Rs 1,005.3 crore operating income in FY19. The expenditures dropped by 9 per cent from FY19 to FY20.
Rivigo, nonetheless, is “taking all necessary steps to consolidate the business and accelerate the Company’s performance to make it a profitable concern. The company has also been driving the agenda of accelerating alternate revenue growth through the year,” the filing study. Consolidated operations of the business incorporated subsidiaries Rivigo Freight Private Limited and Cloudtech Services Private Limited. Rivigo had raised Rs 379.75 crore throughout FY20.
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Founded by Deepak Garg and Gazal Kalra in 2014, the standalone income for the business for FY20 was Rs 1,080 crore in comparison to Rs 1,028.8 crore in FY19 though losses improved from Rs 510.3 crore in FY19 to Rs 542.2 crore in FY20. Standalone expenditures also improved from Rs 1,539.2 crore to Rs 1,622.3 crore. “The company is focusing on collection of outstanding dues from the customers, increase in customer base, increase the utility of vehicles, optimizing technology use in operations of the company besides reduction of the cost. The management of the Company is committed to accelerate the Company’s growth map and path,” the filing noted.
Rivigo had turned unicorn in September 2019 soon after raising $4.9 million from a South Korean fund KB Platform Fund. It at the moment competes with the likes of Blackbuck, Fortigo, Gati, and so on. The logistics sector in India is about $160 billion with road logistics getting its big player. However, truckers, transporters, retailers, and mechanics complain of a trust deficit probably due to the opaque network of middlemen and little operators, according to Deloitte. This has led to challenges such as fragmented ownership, demand and provide mismatch, low utilization, low pricing, low returns, and low wages. Rivigo operates on a ‘relay-as-a-service’ model exactly where drivers drive for 4-5 hours from their base place to ‘relay’ the truck to a different driver and drive back a different truck to his base place that saves lengthy hours for drivers on the road.