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Cashing In On D2C Boom, COGOS Looks To Take Logistics Tech Lessons From India To Overseas Markets

Cashing In On D2C Boom, COGOS Looks To Take Logistics Tech Lessons From India To Overseas Markets

The direct-to-purchaser (D2C), hyperlocal delivery and ecommerce increase in India over the last  years has intended that ecommerce environment agencies which includes logistics tech gamers have also widened their repertoire and array of services. Now, agencies are geared up to take the lessons learnt from gambling a part in the boom of D2C brands and startups in India to international waters.

Bengaluru-based totally startup COGOS is one logistics tech player this is trying to move over from India and are seeking for achievement in overseas markets.  The organisation has raised $2 Mn in its Pre-Series A round, led through Dubai-based totally international delivery and logistics participant Transworld Group and New York-based totally deeptech fund Worldquant Ventures among other traders. Transworld Group’s Ritesh S Ramakrishnan can be joining the COGOS board with this round.

Founded in 2016 by Prasad Sreeram and Dr Rama Mohan Katta, COGOS is a logistics tech platform which goals intracity corporations that operate their deliver chain on trucks or smaller business four-wheelers and 3-wheelers.

COGOS Takes Indian Lessons Abroad

Sreeram informed cft that having mounted a community of three hundred operational towns in India, this is the right time to look to expand abroad. While he didn’t specifically point out the international locations or markets, the idea is to visit markets which have a comparable appetite for logistics tech and ecommerce solutions as India, and wherein the Indian diaspora has a extensive presence.

“The modifications inside the Indian market have surely spread out doorways for online change and commerce to maintain growing, and logistics gamers have relied on leveraging the modern day technology to win. This can be scaled for other markets. I trust what we've developed for India is suitable globally, but we are searching at markets that need virtual transformation similar to India,” COGOS cofounder Sreeram stated.


Besides increasing foreign places, the business enterprise will look to further make stronger its era stack, which drives the transport and logistics control SaaS platform, imparting customised tech solutions for groups based totally on their intra metropolis logistics wishes.

Sreeram became assured that domestically, the boom of ecommerce in Tier 2 and 3 India will hold to offer B2B logistics players possibilities to discover niches and grow. “There are masses of challenges to be solved and we need to ensure that logistics infrastructure may be improved to even greater far off regions, as that offers a terrific possibility for deeper use of tech.”

In the beyond it raised $1 Mn from Indian Angel Network, Ev2 Ventures (formerly Emergent Ventures) led with the aid of Karan Mittal and Charles Owen and different angel investors.

Rising D2C Tide Lifts Logistics Tech

In phrases of the logistics control software program, COGOS gives a delivery management system that agencies use to book trucks, and control the movement of shipment which additionally includes live monitoring. They also can get digital proof of delivery to thwart theft and protect against different incidents in transit. Businesses can also preserve song of their trucking costs through a committed dashboard.

Speaking approximately how D2C manufacturers have leveraged COGOS, the cofounder said that companies can plan, schedule, and dispatch items intelligently to save costs on transport, that is a chief overhead for D2C organizations and dealers on ecommerce. “Typically, D2C brands need full control of their operations so the SaaS answer is right for them. Given the competition in some categories, loads  depends at the backend deliver chain, how properly they  are able to supply it.”

Brands can pick out their centered cities or metros, what type of volume they are looking at after which COGOS shows the kind of vehicle and fleet wanted for the operations. This is greater flexible for smaller brands which have low potential or while manufacturers enjoy seasonal surges. Besides this, it additionally works with marketplaces and logistics tech majors which includes Flipkart, Amazon India, Udaan, Delhivery, BigBasket for town logistics.

As highlighted in our current file, India is domestic to more than 800 D2C manufacturers, and most of them are witnessing a spike in demand even from Tier 2 and Tier 3 cities during the pandemic-brought on lockdown last yr and this 12 months. Amid this boom, the alternative big cognizance for COGOS is electrical cars for city logistics.

It has roped in OEMs to offer electric powered 3-wheelers for commercial usage. In June, COGOS stated it will augment its fleet by way of 2500 EVs in Bengaluru, Hyderabad, Delhi Gujarat, Maharashtra and Tamil Nadu.

COGOS claims its AI-driven logistics SaaS platform, with a purpose to combine EVs into the delivery procedure, will have significant environmental and social impact. The investment from WorldQuant is a testomony to the generation that the business enterprise has constructed, Sreeram claimed.

COGOS shall we agencies choose cars as in line with their needs and offers them a preference of EVs, highlighting the financial savings to the enterprise proprietor. This enables in riding adoption of EVs and as a end result the complete logistics industry will gain, due to the fact that anyone is transferring to transition to electric vehicles. The purpose for COGOS is to generate 30% of the overall revenue from electric automobiles by means of 2023 or 2024.

Competing With Trucking Unicorns

COGOS competes with logistics tech and trucking unicorns which includes Rivigo and Blackbuck that have a huge presence around India and the globe. Like COGOS, those businesses additionally provide solutions which include car analytics, course planning, human behaviour analysis, automobile-alert structures and insights for decision making .

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Sreeram believes that there's a wide scope for greater gamers notwithstanding the presence of heavyweights, because nobody participant can win this marketplace. He said most trucking organizations consciousness on metros for city logistics, given the higher quantity of enterprise there. That’s understandable but COGOS is targeting smaller towns and towns along side the metros, which the organisation believes is a massive sufficient differentiator in a massive marketplace inclusive of India. And the revel in of running in smaller towns can even help COGOS ruin via in worldwide markets where logistics tech penetration can be low.

The business enterprise’s revenues are stated to have doubled inside the past couple of fiscals, in spite of Covid, Sreeram stated, including that the present day annual revenue fee is $7 Mn proper now, that is anticipated to move better at some stage in the upcoming festive season in India from October onwards. On a transactional level, the agency claims to be unit financial wonderful and Sreeram stated that the plan is to use this spherical to scale-up and acquire further growth before going for a Series A quickly after.

Correction word:

An in advance version of this text erroneously noted some names as angel buyers of COGOS. The blunders has now been fixed.

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