Cold Chain Monitoring Startup TagBox Raises Angel Funding from Indian Angel Network & IAN Fund
According to a Markets and Markets report, the cold chain monitoring market is expected to grow from $ 3.11 billion in 2015 to $ 6.23 billion by 2022, growing at a CAGR of 9.84 percent between 2016 and 2022.
TagBox, a Bengaluru based Tech & IoT startup which enables organizations to create reliable and sustainable Cold Chains with the use of IoT, Advanced Analytics and Automation has received an undisclosed angel investment from Indian Angel network and the IAN Fund. Leading the funding round are IAN members Mr. Naveen Gupta and Mr. Dinesh Goel.
Founded in the year 2016, by Adarsh Kumar, Saumitra Singh and Sameer Singh, TagBox helps organizations improve their cold chains by giving real time visibility and predictive insights for end to end cold chain health at any level of granularity. Ex. Box, pallet, cold room, refrigerated vehicle or retail store/pharmacy.
Commenting on the fund raise, Adarsh Kumar, Co-Founder TagBox said, “We are incredibly privileged to be invested in by such an amazing investment network. We believe that IAN’s experience and in-depth knowledge would provide a significant boost to our quest to cost-effectively & reliably tag every single box that carries cold chain products, monitor its health real-time and predict and prevent cold chain failures.”
Despite the current cold chain industry which is globally a $10Bn market, the ecosystem is riddled with inefficiencies. The key problem areas in cold chains are:
- Low or fragmented visibility and traceability into cold chain health and performance
- Inability to meet compliance requirements, leading to penalties
- Product spoilage, shrinkage & expiry losses due to mismanagement and breakdowns
- Significant human dependence for quality control; very low automation
- High Cold Chain cost (4X of regular supply chain) ; Low SLAs
The current solutions are primarily ‘Hardware’ oriented and provide raw telemetry data to organizations in formats that can be barely used with limited data historical storage.
Addressing these challenges, Tagbox provides comprehensive solutions using IoT, Advanced Analytics and Automation to integrate the client’s ERP data with sensor data for advanced analytics, thereby directly improving the cold chains. Their hardware layer consists of Tag360 sensors that can monitor temperature, humidity, vibrations and light; TagHub ultra low power gateways which transmit data from Tag360 sensors to the cloud via wi-fi or cellular network and TagLink Mobile App can be used by authorized field personnel to transmit sensor data when needed, especially from restricted locations like ports or customs.
Commenting on the investment, IAN Lead Mr. Naveen Gupta said, “There is no doubt that technology has given cold chain monitoring a significant boost, and the space is growing at a rapid pace. We strongly believe that the solutions provided by TagBox, not only differentiates from other players but also has the potential substantially develop the future of India’s Food waste management.”
According to a Markets and Markets report, the cold chain monitoring market is expected to grow from $ 3.11 billion in 2015 to $ 6.23 billion by 2022, growing at a CAGR of 9.84 percent between 2016 and 2022. The report also finds that the cold chain monitoring market in the Asia-Pacific region is expected to grow at the highest rate between 2016 and 2022 on the back of the growing demand for food, increase in population relying on medication, and rapid urbanisation. However, Almost 40 percent of India’s total food production is lost in transit, wasted by consumers or damaged (according to the United Nations Development Program), and nearly 80 percent of medicines produced lose their potency due to inferior temperature controls during transport. “No doubt that the market has tremendous potential, but what differentiates us from others is delivering our tech efficiently, with precision and timeliness.” Added Adarsh.
The start-up plans to utilize the funds for product development, filing patents and global certifications for its entire tech stack and is currently focusing on Cold chain solutions for pharma, F&V, dairy, meats, processed and frozen food, e-commerce and retail.
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