GoBOLT using tech to offer E2E logistics solutions as economy revives

The company, whose revenue grew to Rs 200 cr in FY21, has a current revenue run rate of Rs 22-25 cr a month; it aims to double that over next 12-18 months

The one sector that really came into focus as the pandemic brought normal living to a standstill was logistics. Despite the fact that people were locked at home, the everyday supply of goods and services continued uninterrupted.

However, the pandemic also brought to the fore the need for adoption of technology by logistic sector. Moreover, startups in the logistic sector also saw their services in demand as suppliers wanted delivery partners to offerassurance of services and also looked at real-time monitoring of supply chain.

One such firm is Gurugram-based logistics firm GoBOLT, an end-to-end (E2E) logistics solutions provider, which offers line haul express solutions to the e-commerce and non-e-commerce industries.

"Logistics was one of the (most) adversely impacted sectors due to the pandemic outbreak last year. It also brought about changes in the consumers’ preferences and they opted for online shopping for fulfilling all their purchasing needs, right from daily essentials to healthcare products. This shift affected the logistics sector which is largely a consumer-driven market," said Sumit Sharma, co-founder GoBOLT.

The firm was set up in 2015 by Parag Aggarwal, Naitik Baghla and Sharma. The idea of trying to solve the transit inventory issue in India was the genesis of GoBOLT. Aggarwal and Baghla had seen this issue first hand while working at a project at pharmaceutical major GSK, which was trying to reduce inventory levels at its warehouses.

The idea was to focus on two issues--disintermediation and increased asset utilisation--which would both be enabled through technology. The company built a cloud-based solution with different modules that manage different entities. 

"We offer route optimisation algorithms, automated in-plant management systems, warehouse management solutions, along with end-to-end visibility of the entire supply chain and play a pivotal role in transforming the overall logistics scenario. Digital transformation will contribute majorly in improving the overall customer experience as well as in boosting the growth of the logistics market," Sharma said.

The company, which says its revenue grew to Rs 200 crore during the financial year ended March 31, has a current revenue run rate of Rs 22-25 crore per month and it aims to double that over the next 12-18 months.

Sharing his experience during the first lockdown, Sharma points out that more than delivering goods on-time, what impacted the industry most was the confusion due to the lack of clarity in the kind of what goods counted as essential and non-essential, stigma faced by truck drivers in their villages and lack of facilities along long routes. 

"One of the major challenges that we face in the logistics value chain is the lack of penetration of technology. Every sector in the present times is already treading on the path of digital transformation. Be it healthcare, infrastructure, financial sectors, they have efficiently adapted tech solutions. However, in logistics specifically in the transportation category, tech adoption has been at a slow pace both on the vendor and customer sides, which has hit the supply chain model adversely," he said. 

Sharma said three technologies that hold promise for the logistics players are data analytics, Internet-of-Things based technology and automation. 

The company is now looking at expanding its presence across different parts of the logistics value chain, and also expanding operations to different geographies. At present the company has presence in over 100 cities, access to 10,500 trucks and three warehouses.

GoBOLT raised $20 million in June in a Series B round from Paragon Partners Growth Fund II and existing investor Aavishkaar Capital. The round also included small secondary components as well as debt lines from private banks.

Sharma said the majority of the investment will go towards strengthening the technology backbone. "We will also use the fund for marking our presence in various parts of the logistics chain. We will work not only to upscale our operations but are also aiming at expanding our footprints across geographies as well as hiring worthy talent to join our team at GoBOLT. We will also use the capital to strengthen our product portfolio and improve our service propositions with the sole aim to improve customer experiences," he said. 

According to industry estimates, the size of the Indian logistics market is pegged at $215 billion and is growing at a compounded annual growth rate of 10.5 per cent and only 10-15 per cent of the overall market is owned by organised players. 

He agreed that the sector is very fragmented and there is an absence of consolidation of big players, as well as inefficiencies and gaps with respect to operations and skillset.

"However, with the new-age players entering the logistics landscape and the consolidation of the market happening at a significant pace, both these processes are stepping in as viable solutions for the sector. Collaboratively, they will help the segment to overcome these challenges easily and smoothly," he added. 

“With the introduction of GST and increasing modernisation of the highway network, the industry is experiencing a structural shift with strong tailwinds. Covid-19 has provided a fillip to the e-commerce industry and agile tech-led profitable players such as GoBolt stand well placed to cater to the strong industry growth,” said Sumeet Nindrajog, cofounder and senior partner, Paragon Partners at the time of fund raise.