The financial exchange division of NASDAQ-listed software company Ebix has acquired 67 per cent stake in Delhi-based logistics startup Routier. EbixCash has not disclosed the quantum of the investment nor did Routier.
The investment marks Ebix’s very first investment in an Indian startup. Ebix plans to help Routier by providing additional advanced technology expertise, financial backing and brand recognition. Founded by IIM alumnus Ankur Dahiya and Harvard Law School alumnus Adwait Vikram Singh, the startup provides a tech-driven platform to offer end-to-end trucking solutions.
The B2B logistics startup plans to drive efficiency for truck drivers, customers and transport agencies by using an innovative mix of data analytics, artificial intelligence and advanced logistics solutions available on the cloud. Routier has already gathered some notable clients like Coca-Cola, Asian Paints and Samsung.
Talking about the investment, Robin Raina, Ebix Chairman, President and CEO, said, “Exchanges and marketplaces are meant to provide a network effect that drives efficiency for all concerned and is best targeted at industries that are highly inefficient and lack technology-savvy. India’s trucking industry is a perfect example of such an opportunity to deliver tremendous value and efficiency, and thus we are quite excited to be partnering with Routier in its mission to redefine the trucking logistics industry.”
Players like BlackBuck, Rivigo, Porter and TruckEasy are among the major competitors of Routier. Ebix, founded by Robin Raina, provides on-demand e-commerce and software services to the financial, insurance and healthcare industries. Earlier Ebix acquired assets of Business Travels, to improve Via operations. Ebix also acquired fintech company Miles Software for INR 136 crores in September.
As per the Economic Survey 2017-18, the Indian logistics sector provides livelihood to 22 million-plus people and improving the sector would facilitate a 10% decrease in indirect logistics cost, leading to a growth of 5-8% in exports.
Further, the Survey estimates that the worth of the Indian logistics market would be around US$ 215 billion in the next two years compared to about US$ 160 billion currently. The boom in the next couple of years is expected largely due to the implementation of Goods and Service Tax (GST).