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International VCs spent more than
4.5 billion dollars in 265 projects in the
Indian logistics sector between 2014
and H1 2022. The capital markets will
almost certainly boost their investment
during the next two to three years.
“The majority of the investment goes
an unorganized to an organized sector, into digitisation, capacity, infrastructure,
we consider how we can provide value and last-mile supply to cater to the
as a small player, and how I can help. I growing demand. There are significant
begin by selecting unorganized players investments in autonomous vehicles and
who are micro players and require the drones as well. However, the sector is
capacity, resources, capital, clients, the yet to see a successful GTM on a global
proper sort of little team, and resources scale, which will further fuel investment
for an efficient business”. in the sector,” said Jaain.
“The Indian logistics market is fast The drone industry startups
evolving, the road logistics market is and the EV industries are at a high
already contributing to $240 billion pace now with multiple expansion
taking 75% share of the overall announcements and attracting
transport market size, according to investors into their business. In recent
a report by Economic Times. With news, Skye Air Mobility, a Gurgaon-
Delhivery doing an IPO and a number based drone company, raised $1.7
of others in the space looking at the million of investment to ramp up its
same route, the investment appetite is drone deliveries.
substantial. But definitely, questions “Digitalisation is clearly leading
are asked about the moats for a in terms of investment, followed by
sustainable and profitable business. automation and drones. However,
From the perspective of venture capital automation will take time to settle in
(VC) funding, enough dry powder is the sector because businesses are
available in the market to invest. But the still not implementing technology like
valuations are cut, investors are looking racking systems in warehouses and
at paths to profitability and moats which their storage facilities today. Automation
are sustainable,” Visakh Sasikumar, cannot occur until the required
CEO & Co-founder, Fyn Mobility. infrastructure is provided. There is still
a gap between what we want to achieve
Where are the investors more and what is really happening. If we
interested? want automation, we must embrace
The Indian logistics industry, estimated digitalisation,” Verma added.
to be worth more than $200 billion, is India spends approximately 13%
now looking forward to a flourishing of its GDP on logistics, whereas the
post-pandemic future. The logistics United States spends 8% and Europe
business is now equipped with cutting- spends roughly 9%. Because of the
edge digital technologies and can pandemic that is causing a low-touch
conduct end-to-end online operations. economy, we are seeing a major shift
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