India’s logistics Saas startup FarEye, announced it raised an additional $13 million to close its Series D financing round at $37.5 million. The round received massive participation from industry veterans Nandan Nilekani, Sanjeev Aggarwal’s Fundamentum Partnership, and from KB Global Platform Fund.
FarEye helps companies orchestrate, track, and optimize their logistics operations. Say you order a pizza from Domino’s, the eatery uses FarEye’s service, which integrates into the system it is using, to quickly inform the customer how long they need to wait for the food to reach them.
Behind the scenes, FarEye is helping Domino’s evaluate a plethora of moving pieces. How many delivery people are in the vicinity? Can it bundle a few orders? What’s the maximum number of items one can carry? How experienced is the delivery person? What’s the best route to reach the customer? And, would the restaurant need the same number of delivery people the following day?, explained Kushal Nahata, co-founder and chief executive of FarEye.
Logistics firms have made a minimal investment in digitization. So, “the amount of visibility they have over their own delivery network is minimal. Forget what a customer should expect,” said Nahata, explaining the challenges the industry faces.
FarEye is addressing this by using AI to parse through more than a billion data points to identify the optimum solution. In the past year, it has fine-tuned its algorithm to handle last-mile and long-haul deliveries to offer a full suite of services to its clients said Nahata.
The fresh capital will help the startup as it looks to scale ahead of the festive season when people in India spend lavishly and thereby give more business to FarEye’s clients. It’s also the time when e-commerce firms clock record sales. The rest of the focus is on international expansion, said FarEye.
The startup, which already has clients in the U.S., Europe, and Singapore, plans to further its growth outside of India. Nahata said several of its existing clients have extended their tie-up for operations in other markets.
“Investment in the logistics space is essential for the economic growth of any nation. FarEye has captured the pulse of this industry and has all the ingredients to head towards global leadership. I believe in the founders and the team has the clarity of vision. We are excited to partner with FarEye in its journey to create a global technology leader in the logistics space,” said Aggarwal of Fundamentum, in a statement.