Bengaluru’s Porter Secures $200 Million in Series F Funding
Porter, an innovative on-demand logistics company based in Bengaluru, has successfully raised $200 million in its Series F funding round. This significant investment was spearheaded by Kedaara Capital and Wellington Management, joined by existing investor Vitruvian Partners. With this influx of capital, Porter’s valuation has surged to $1.2 billion, an impressive leap from its previous valuation of $1 billion.
Funding Details and Shareholder Exits
The recent funding round comprises approximately $50-80 million allocated for primary investments. Meanwhile, the remaining $120-150 million involves secondary exits for current shareholders. Notably, early investors Peak XV Partners (formerly known as Sequoia Capital India) and Kae Capital have completely exited during this funding round.
Expansion Plans in Motion
Porter intends to channel the newly acquired funds into expanding its geographical footprint and enhancing its network of partners, aiming to onboard over 1 million gig workers. "This funding allows us to fast-track our growth and develop world-class, sustainable logistics solutions," stated Uttam Digga, co-founder and CEO of Porter.
With this latest financial boost, Porter’s total fundraising has reached around $250 million. The company made headlines last year when it achieved unicorn status after an ESOP buyback valued it at $1 billion.
Market Position and Growth Trajectory
"In a largely unorganized and underserved market, Porter has created a tech-first, asset-light platform that delivers seamless and reliable logistics solutions on a large scale," remarked Anant Gupta, a partner at Kedaara Capital.
Shailesh Lakhani, Managing Director at Peak XV, reflected on the company’s journey, saying, "In this time, the name Porter has become synonymous with logistics, to the point that saying ‘I am Portering it’ implies your goods will arrive shortly."
Impressive Financial Performance
In FY24, Porter reported a staggering 56% increase in revenue, reaching Rs 2,733.8 crore, following a doubling of revenue to Rs 1,753.8 crore in FY23. Additionally, the company successfully reduced its losses by 45%, dropping to Rs 95.7 crore from Rs 174.6 crore in the previous fiscal year. Although FY25 results are not yet available, Porter has previously indicated its trajectory toward profitability by the end of this fiscal year.
Comprehensive Service Offering
Porter is renowned for its wide-ranging services, including intra-city transport, packers and movers, and enterprise logistics solutions. It caters to 3 million customers monthly with the help of 300,000 gig workers across 22 cities in India. This year also marked its first international venture, with Porter expanding into the United Arab Emirates (UAE).
For this transaction, IndigoEdge served as the exclusive financial advisor, further solidifying Porter’s standing in the ever-evolving logistics sector.
By leveraging cutting-edge technology and a robust network, Porter is poised to redefine logistics in India and beyond, ensuring that it remains at the forefront of an industry ripe for innovation.
