The News Scroll 17 January 2021  Last Updated at 5:24 pm | Source: PTI

Shift Freight expects its topline to touch Rs 50 cr by FY2022

Shift Freight expects its topline to touch Rs 50 cr by FY2022
outlookindia.com
1970-01-01T05:30:00+0530
Mumbai, Jan 17 (PTI) On-demand shifting services provider Shift Freight expects its topline to touch Rs 50 crore by the end of fiscal 2022 on the back of a pan-India presence and a significant jump in daily movements, its Co-founder, Avinash Raghav has said.

The Noida-based start-up entered the fast-growing logistic services space just prior to the imposition of the coronavirus-induced lockdown in March last year.

The firm with presence across 10 cities including Delhi-NCR, Bengaluru, Hyderabad and Jaipur, among others, conducts over 1,000 movements per month and is growing at 75-80 per cent month-on-month in terms of both order and revenue, with a fleet of 560 trucks attached to the platform, according to Raghav.

"We launched in February and though we executed some orders till lockdown, our actual operations started, in a way, from June 2020 only. But then the gap helped us solve the issues in our system and integrate it with industry requirements," Raghav told PTI in an interaction over phone from Dubai.

From having a minuscule 50 orders and around Rs six lakh in revenue in June, Shift Freight crossed 1,000 movements and over Rs 1-crore in revenue in December 2020, he said.

"We are looking to expand operations to 65-70 cities by March 2022, with a fleet of 1,500-2,000 trucks attached to it. That would help us carry out 4,000-4,5000 movements per month. So overall, we are expecting around 50,000 orders with a total sales of Rs 50 crore by the end of March 2022," Raghav said.

As much as 60 per cent movements are expected to be for intra-city and rest 40 per cent for inter-city movements, he said.

The company''s ticket price ranges between Rs 1,000-Rs 2.5 lakh and the average ticket price stands at around Rs 10,000, he said.

Stating that Shift Freight aims to fill the gap in the USD 3.5-billion movers and packers segment of the logistics industry in the country, Raghav said that his company will continue to focus on the end-consumer market.

"In the mover and packers segment, not only in India but even in the US, you hardly find aggregators who are dedicated for movers and packers business," he said.

Raghav said his company is looking to launch operations in the US and is already in the process of registering the company in Delaware.

The movers and packers'' aggregator market in the US is 10 times that of India''s but there is also no aggregator operator and about 47 per cent of the business remain in the hands of companies operating in the space as small as having 4-5 people, he said.

"We will be launching the US operations by the fall (around September) and expand it in a phased manner, starting from Washington DC," he said.

Shift Freight, which received USD 1-million investment from angel investors, may also look at raising around USD 30 million in Series A funding in the last quarter of the next fiscal, Raghav said.

"We have recently been valued at minimum USD 40 million by our auditors and we are looking to make it a USD 200-400 million company by March 2022. At present we are adequately capitalised. We will be raising funds only by the end of 2022," he said.

Stating the company would look at raising 10 per cent of the equity share funding which will be around USD 30 million, he said adding "we will look for Series A funding. Some of the global banks as well as some Saudi Fund Houses have shown interest." PTI IAS DRR DRR DRR


Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI
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