The new funding will be used to expand operations and accelerate growth
Existing investors Sequoia Capital India and Lightrock India also participated in the funding round
Bengaluru, NFAPost: Porter, India’s leading tech-based, on-demand, intra-city logistics company, has raised Rs 750 crore in its Series E funding round led by Tiger Global Management and Vitruvian Partners, with participation from existing investors Sequoia Capital India and Lightrock India.
IndigoEdge acted as the exclusive financial adviser to Porter in this funding round. According to official sources, the company will leverage this capital infusion to consolidate its position, focus on acquiring talent and expanding operations to enter the top 35 cities of India by 2023, further strengthening its position as a leader in the logistics market.
Talking about the funding, Porter CEO Pranav Goel said the company is excited to welcome the two marquee global funds with a great track record of backing enduring businesses world over.
“This funding round, in the current economic scenario, is a testament of the execution of the entire Porter team. The idea behind Porter was to solve the existing market gap between demand and supply by creating a tech-enabled liquid marketplace to drive better vehicle utilisation and service levels for our users,” said Pranav Goel.
Over the years, Pranav Goel said the company has realised that apart from being a great business opportunity and got a chance to make a positive impact on the lives of over 2 lakh driver-partners. “Everyday still feels like we are at Day 1 in this exciting journey, and we are grateful to have partners who share our vision,” said Pranav Goel.
Porter’s unique market place results in massive benefits to all stakeholders. Drivers earn 30% more, customers save 20% on logistics cost and have a better experience with lower wait times and higher availability. Porter is also one of the only logistics models that is 100% asset light and has a negative working capital cycle.
Tiger Global Partner said Griffin Schroeder in a challenging market, Porter has developed excellent repeat driver and customer cohorts, demonstrating the platform’s unique value. We are excited to partner with Porter as it reinvents and markedly improves intra-city logistics across India.
“We at Vitruvian Partners are committed to supporting the most ambitious and talented entrepreneurs and companies to achieve their vision. Porter has built a leadership position frugally in the fast- growing intracity market,” said Griffin Schroeder.
Impressed by their high growth rate with profitable unit economics and metrics that are comparable to leading businesses world over, Cortex Partner at Vitruvian Partners Peter Read said the company couldn’t be happier to have started its journey with Porter and are hoping to see new milestones being made in the coming years.
Sequoia India Managing Director Shailesh Lakhani said today it is hard to not see a Porter partner vehicle on the road in any major Indian city.
“Pranav, Uttam, Vikas and team have built a way for businesses to transport more efficiently and deliver a better livelihood for driver partners. Sequoia Capital India is thrilled to invest in this new round and welcome new partners in Vitruvian and Tiger,” said Shailesh Lakhani.
Lightrock India Partner Vaidhehi Ravindran commented that Lightrock India is extremely delighted to have backed the Porter team as they have built the company as a testament to the fact that scaling fast can go hand-in-hand with building a disciplined systems driven business.
“This is a result of a remarkable combination of deep empathy to their driver-partners, data driven decision making and a lofty ambition demonstrated by the Porter team,” said Vaidhehi Ravindran.
Porter has consistently achieved triple digit annual growth since its launch in 2014 and has been growing faster with scale as network effects play out. The company now has presence in over 13 cities across India with more than 50 lakh customers and 2 lakh+ owner-drivers on board. Porter has created disruption in various domains of logistics by launching an on-demand marketplace for LCVs and bikes, Porter for Enterprise and Packers & Movers.
Founded in 2014, Porter is now India’s largest Intra-City logistics Marketplace. Intra city logistics is an INR 3 lakh crore market. Porter strives to improve the lives of over 2 lakh owner-drivers by providing them with consistent earning & independence. Currently, the company has serviced over 50 lakh customers across 13 cities in India. Founded by Pranav Goel, Uttam Digga & Vikas Choudhary. Porter has created disruption in various domains of logistics by launching an on-demand marketplace for LCVs and bikes, Porter for Enterprise and Packers & Movers. For more details: https://porter.in/
About Vitruvian Partners
Vitruvian is an independent growth capital firm headquartered in London with offices across London, Stockholm, Munich, Luxembourg, San Francisco, and Shanghai. Vitruvian focuses on dynamic situations characterized by rapid growth and change across industries spanning information technology, financial services, life sciences & healthcare, media, and business and consumer services. Vitruvian is currently investing from its fourth fund, the €4.0 billion Vitruvian Investment Partnership IV, which is among the largest pools of capital in Europe supporting innovative and higher growth companies. Vitruvian Funds have backed over 45 companies and have assets under management of approximately €10 billion. Notable investments to date include global market leaders and innovators in their field such as Just Eat, FarFetch, Darktrace, Trustpilot, Marqeta, TransferWise, and Skyscanner.
About Tiger Global Management
Tiger Global Management is an investment firm focused on private and public companies in the internet, software, and financial technology sectors. Since 2001, Tiger Global has invested in hundreds of companies, across more than 30 countries, at stages ranging from Series A to pre-IPO. The firm aims to partner with dynamic entrepreneurs operating market-leading companies in its core focus areas. Tiger Global’s investments have included JD.com, UiPath, Stripe, Databricks, Bytedance, Snowflake, Facebook, Alibaba, Procore, Chime, Blend, Peloton, Attentive, LinkedIn, Flipkart, and Toast.