Hyperlocal logistics start-ups, the backbone for any e-commerce company, had a bumpy ride in 2016 in terms of fund raising and it does not seem to be getting any better. Venture capital funding into logistics start-ups has drastically declined by 68% to $124.61 million in 2016 compared to the previous year, as e-commerce firms struggled on account of limited funding which curtailed their expansion plans.

In 2015, logistics start-ups had managed to raise a whopping $385 million, according to data from venture capital intelligence firm Tracxn. These companies are mainly operating in the B2B, B2C logistics segments with focus on infrastructure, inter-city and international logistics, courier booking and IOT solutions among others.

Interestingly, top 10 start-ups accounted for a majority 96.36% of the total funds raised during 2016. In 2015, the top 10 firms accounted for 92% of the total funds raised. The top ten start-ups in the sector are Ecom Express, Delhivery, Rivigo, BlackBuck, Xpressbees, GoJavas, Shadowfax Holisol Logistics, LogiNext and Qikpod in the last three years.

These firms have cumulatively raised $517.66 million between 2015 and 2017 (till end of January). About 93.2% of the overall funding is captured by the top ten firms in the last three years, Tracxn data made available to the FE revealed.In 2017 till now two logistics start-ups have raised a total of 8.05 million, while another two firms have not disclosed their funding, Tracxn data showed. Roambee has raised $4.1 million, while LetsTransport has raised $3.95 million in January 2017. Vdeliver and Tyre Express have not disclosed their funding this year.

So far, the logistics sector has seen a total of 645 start-ups in the country, of which 12 companies have cross border operations and enable international couriers via their platform. Between 2015 and 2017, Ecom Express has emerged as the leading start-up in terms of funding at $149.50 million. It has raised funds from Peepul Capital, Warburg Pincus and Oliphans Capital. Ecom Express is a one-stop shop for all solutions. It provides end-to-end logistics solutions for e-commerce sites. It had received $16.5 million in September 2014.

Delhivery is the second highest recipient of venture capital in the logistics sector. Till now, the star-tup has raised a total of $125 million from investors like Nexus Venture Partners, Tiger Global Management, Times Internet and Multiples Equity. It also provides integrated logistics solutions. It also outsources some work instead of keeping everything in-house. [Via The Financial Express]