Company to use the funds for expansion, technology
Ramco Cements-backed Lynk Logistics Ltd., a SME-focused delivery platform, has initiated talks with private equity firms to raise money to fund its growth plans, said a top official.
“Having started our firm in a small way from Chennai, we are planning to go places” said Abinav Raja, co-founder Lynk Logistics. “Today, we are in Hyderabad and Mumbai and will be entering Bengaluru, Delhi, Ahmedabad, Kolkata and Pune by end-2019.”
The expansion would entail an investment of $20 million. Lynk Logistics had already started talks with private equity firms and the final amount would be determined soon. The funds would be used for entering new cities and investing in technology innovations.
Mr. Raja, along with Shekar Bhende, co-founded the firm in 2016. Ramco Cements currently holds more than 49% stake with the balance held by promoters.
Lynk Logisitcs had been profitable from the sixth month onwards. The number of customers had risen to eight lakh from 80,000 and delivery trucks and bikes from 1,500 to 9,000.
“Our revenues have been growing by almost four times. Last fiscal, we recorded about ₹15 crore and this year, it should grow by 3.5 times. We will be crossing ₹100 crore in revenue next year,” said Mr. Bhende.
Mr. Bhende said the company was floated with a vision to move anything from paper to huge parcels within city at affordable prices. “It is with this concept in mind, we introduced delivery through bikes last month. Our focus will be on delivering goods intra-city and not inter-city,” he added.