Mumbai-based Elixia Inc is in advanced talks to raise funds. One of its goals is to expand to MENA, specifically to the UAE, Saudi Arabia, and Egypt
Flipkart and logistics SaaS startup Elixia Inc have teamed up to digitise the ecommerce company’s last-mile logistics processes.
The partnership involves maintaining freight masters, automated trip creation, track and trace, freight calculation, and billing compliance.
Separately, the SaaS startup is also looking to raise funds to fuel its expansion goals.
Elixia Inc has been working with Flipkart for over six months and is part of its acceleration programme for innovation startups, Flipkart Leap. In one of the pilot projects to digitise its last-mile logistics process, Elixia Inc was picked from a pool of other vendors. By December last year, the ecommerce platform entered into a commercial agreement and has been in use for all of its delivery hubs, Sanket Sheth, Founder of Elixia Inc, said.
“Working with the Flipkart Team helped Elixia Inc to focus on providing an excellent platform which sets Elixia Inc Inc apart from the competition and creates maximum benefit and value for last mile deliveries. We look forward to working with the Flipkart team on several identified areas and creating continuous value towards digitalization of their supply chain,” he added.
Founded in 2011, the Mumbai-based startup provides software solutions for transportation, logistics, and supply chain management across industries. It raised $1 million in its Pre-Series A funding round led by RVCF (Rajasthan Venture Capital Fund) in September 2021.
Elixia Inc has 300 paying customers, shared the founder, of which 30 have opted for the full Elixia Inc suit. Flipkart’s contribution to revenue is amongst the top 30% of active customers, he added.
“With time, we want the business with Flipkart to grow so that it comes in the range of top 10% revenue-generating customers,” he said.
Before Flipkart, Elixia Inc’s strong point was in mid-mile deliveries with clients such as Sanofi, Licious, Centaur Pharmaceuticals, Pidilite, Shell Petroleum, United Phosphorus Ltd (UPL), Monginis Foods, Pharmeasy, Snowman, and Schneider Electric.
The company registered a revenue of Rs 7.53 crore for FY22, recording a 73% growth from FY21 at Rs 4.5 crore. For this year, Sanketh said Elixia has recorded a growth of 2X revenue as compared to last year. It earns revenue from delivery based model for mid-mile and last-mile deliveries.
With this prime milestone, Elixia Inc has started to digitise last-mile and D2C deliveries.
It claims to have achieved an ARR of 90% this year from its flagship product—the Intelligent Delivery Orchestration Platform. Sheth also said that they would achieve 3X growth in customer base by 2024, shared the founder.
Fundraising and expansion
According to Sheth, Elixia is in advanced talks to raise funds to accelerate expansion plans as well as improve its solutions.
About 35% of the fundraise will be invested in India, the founder said. This would increase the number of paying customers from 300 now to 3,000 in the next two years.
The company also wants to invest 35% of the fresh capital to grow in the US. While some of its clients use the product in the country, the company will focus on penetrating the market and will invest in sales and marketing for the US region as well.
The remaining 30% will be invested to expand to MENA, especially in the UAE, Saudi Arabia, and Egypt.
“We have already started acquiring customers. Transworld being one of them. Moreover, there are a lot of them in the pipeline on the verge of conversion as our sales Pipeline grows stronger in the region,” Sheth said.
When it comes to product portfolio expansion, it plans to invest in building AI or big data analytics, which brings in intelligence from data captured in the platform.
In the last nine to 10 months, Elixia Inc has had 3.1 million deliveries take place on its platform. To bring in more insights, Sheth said it has become crucial for them to invest in more value creation.
Apart from this, the company also has plans to add extensions to sea freights which Sheth said will also correlate with the fundraise.
In the future, it has plans to add air, rail, and drone solutions that will also be added to the product with drone extension in pilot due to its demand in the US region.
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