Paytm-backed LogiNext buys last-mile delivery startup YourGuy
Mumbai-based LogiNext will absorb YourGuy's 200 delivery personnel and 20 other employees into its last-mile delivery vertical Sprintr as part of the acquisition, the company said in a statement. It didn't disclose financial details of the deal.
"We will be using the Sprintr platform to on-board regional last-mile delivery players who use our tech and pay us a share in the commission. LogiNext will also direct business to these regional players to incentivize the association," said Dhruvil Sanghvi, CEO, LogiNext.
LogiNext raised $10 million from mobile wallet firm and e-commerce marketplace Paytm last year. It launched Sprintr, a tech-driven platform catering to bundled deliveries within a locality across different verticals including pharmaceutical goods, apparel, e-commerce, groceries and food, last week.
The company said it is also looking at acquiring a last-mile delivery player in Delhi-NCR to strengthen its Sprintr vertical in the region.
Sprintr operates in Gurgaon, Mumbai, Jaipur and Ahmedabad. It has 250 delivery personnel and manages about 5,000 daily deliveries. With this acquisition, LogiNext will be doubling its daily orders.
YourGuy, founded by Alay Jhaveri and Shirish Gone, delivers meal boxes, medicines, documents, clothes and other items across Mumbai within a few hours from pickup. The company claims it fulfills an average of 4,000 orders a day from customers including Godrej Nature's Basket, Suburban Diagnostics and Wellness Forever.
LogiNext competes with Roadrunnr and MagicTiger among others. Over the past couple of months, there's been a lot of activity in the last-mile delivery segment thanks to the e-commerce boom. Several startups have gained investors' attention, while some have been snapped up by established startups.
In December, on-demand delivery service app MagicTiger acquired Instano, a chat-based e-commerce application that offers on-demand delivery of services.
In September, Zomato invested in hyperlocal delivery startups Pickingo and Grab while partnering with e-commerce logistics firm Delhivery. In June, online grocery retailer BigBasket.com acquired hyperlocal delivery startup Delyver in a cash-and-stock deal.
However, Delivree King, a logistics services provider focused on e-commerce, closed operations recently as it failed to raise fresh funding.