Mumbai-based e-commerce logistics startup Wow Express has raised Rs 30 crore (around $4.5 million) in its Series A funding round from existing investor including, Tamarind Family Private Trust of the Mansukhani family, the co-promoters of Mirc Electronics, which owns consumer durables brand Onida.
The startup aims to utilise the newly raised funding for geographical expansion, ramp up its technology platform, and to hire executives for the finance and tech verticals.
The current funding round also includes previously issued compulsorily convertible debentures and comprise 30-40% of the total funding raised.
“We want to expand our ecommerce footprint too, from the current 42 cities to over 100 cities in the next 12 months. We are also in talks to bring on board professional executives for our chief operating officer and chief financial officer positions,” said Sandeep Padoshi, cofounder of WOW Express.
In July 2015, the Tamarind Family Private Trust had made a seed investment of $500,000 (Rs 3.17 crore) in the company.
Operated by JMS Logistics and Express Pvt. Ltd, Wow Express was founded in January 2015 by Padoshi, Jayesh Kamat and Mazhar Faruqi. The company which mainly processes ecommerce shipments, recently launched health and diagnostics delivery business, WOW Health Express, through which the firm delivers blood samples and bodily fluids from labs to diagnostic companies. Currently, forming 5-7% of its revenue pie at 50,000-60,000 samples per month, WOW Express plans to grow this vertical to about 20% of its revenue share by the end of FY19.
The startup, which currently handles more than 20,000 deliveries a day, aims to reach up to 50,000-60,000 in the near future. The firm has about 700 delivery executives offering both intra- and inter-city delivery operations. It covers over 1600 zip codes across 40 cities, with 70 branches as of June 2017.
WOW Express counts ecommerce players like Nykaa, Amazon, Myntra, Jabong, Voonik, LimeRoad, Tata Cliq and Shein amongst its clients. The firm claims to have doubled its revenue in FY18 and is looking to close FY19 with Rs 50 crore in revenue.
Other players in the logistics sectors which also have raised funding in the past few months include Locus, HeyDee, Delhivery, Cogoport, Mojro, and Rivigo among others.