Japanese telecommunications gaint Softbank which has earlier invested in firms like Flipkart, Paytm, Ola is currently in talks with Rivigo Services to invest atleast $100 million in the surface transport service provider.
Softbanks Investment’s in India
Softbank has been increasing its investments in India at very rapid pace. The firm has closed two massive deals over the past six months, and in April, the Tokyo based conglomerate had invested $1.4 billion in Noida based Paytm. Last week it accuried a sum of $2.5 billion stake in Flipkart, taking its total investment to $6 million in India.
Rivigo has emerged as a favourite for many investors in last couple of years. The firm has raised more than $ 100 million in equity and debt financing from the likes of global private equity major Warburg Pincus and SAIF partners.
The firm has valued about rupees 2, 800 crore when it closed its previous funding round in November. Deepak Garg, chief excutive of Rivigo has denied of any such news of Softbank’s investing in Rivigo. From Rivigo’s balance sheet it is also not clear wheather Softbank will invest in Rivigo or not.
Rivigo’s introduction of Relay Model in Trucks
Rivigo introduced the relay model to the trucking sector so that a driver would not be in the driver’s seat for over 4.5 hours. At assigned focuses, he would hand over the truck to another driver and direct an alternate vehicle back to where he originated from. This model permits truck drivers, who are ordinarily out and about for quite a long time and weeks, to backpedal home each day. Rivigo scaled up to 2,100 trucks in March with more than 4,000 drivers.
The company which was founded by McKinsey alumni Garg and Gazal Kalra in 2014, is the largest buyer of trucks in India and has also launched a slew of technology products over the past year. Rivigo has raised obligation back of about Rs 400 crore from loan specialists including Kotak Mahindra Bank, HDFC Bank, YES Bank and ICICI Bank. It is expected to surge upto $9.6 billion by 2020 from $1.4 billion in 2015 according to a report by Avendus Capital.