Page 28 - ITLN Nov-Dec 2022 For Magzter

Market Update
Logistics Investment

The majority of the
investment goes into
digitisation, capacity,
infrastructure, and last-
mile supply to cater to the
growing demand. There
are significant investments
in autonomous vehicles
and drones as well.

Nisschal Jaain
Shypmax

toward digitalisation and remote
monitoring in the logistics industry all
across the world.
“Investments are mostly flowing
into product tech which creates
differentiation and scalable SaaS
models. EVs have been catering to
the logistics industry for the past few
years now, but enabling these fleets
to be smart with the help of data-
backed insights through tech-enabled
operations is where we need to focus
now. Autonomous vehicles and drone
investments have slowed down as they
are entangled with regulation issues,”
said Sasikumar.

Is this a good time to invest?
Talking about the current investment
market in the logistics sector, industry issue is impacting start-ups founded tough climates. Larger funding rounds
leaders have diverse perspectives. Some on the principles of sustainable are becoming tougher and business
believe that investments are continuing development,” said Jaain. models without a path to profitability
as usual, but others claim that investors “We have seen that the will face difficulties while looking to
are not showing much interest this time, macroeconomic situation plays a raise,” said Sasikumar.
causing firms to go into survival mode. spoilsport in fundraising. As an Verma from AA Holdings believes
“Without a doubt, the logistics entrepreneur, you don't hit the market that investors are investing even now,
industry needs the ideal mix of with negative thoughts. We believe but that startups need to understand
incentives and support measures to that a solid business model which is what the investors are seeking in order
speed up its recovery and expansion. thought through in terms of how it can to fill the gap. “The competition is
Contrary to what the industry believes, be sustainable in future and has good increasing. These new-age firms are
however, we do not believe that this traction will attract funding even during discussing concepts, but as an investor,
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