Supply chain and warehousing startup Prozo has raised Rs 76 crore from Sixth Sense Ventures, Jafco Asia, and high valued individuals.
Prozo will utilize the new assets to venture into different areas, procure clients, put resources into innovation, and recruit individuals, founder Ashvini Jakhar said.
Dexter Capital Advisors was the monetary counselor for the round.
Prozo sells its clients – generally direct-to-consumer (D2C) brands – a supply chain service that assists them with duplicating Amazon Prime’s guarantee of same-day or 24-hour conveyance.
The organization offers an attachment and-play, pay-per-utilize model.
“Many years back, the product was the differentiator, then branding became a differentiation, in the internet era ratings and reviews became a differentiation, then pricing became a differentiation. But private labels killed the pricing differentiation,” Jakhar said.
“Today, the true differentiation is fast fulfillment. What started as good to have has become an important differentiation. Today, the supply chain has become a revenue enabler. Your distribution is your differentiation.”
Prozo will start providing 24-hour delivery to most parts of the country, he said. “…we are covering the country from the perspective of four zones – North, South, East, West,” he said.
“To cover the entire country from a one or two- day delivery standpoint, you need a minimum of 8 locations. We can do even better with 16 locations,” he added.
The company, established in 2016, provides freight, technology, warehousing, and distribution services on over 20 online marketplaces on a pay-per-use model.
“Between the product and the market, there is a lot of noise,” he said, describing to the different channels that brands need to associate with for web based business. Brands generally need to go to isolate stages for cargo, offline, B2B, and B2C channels. Prozo professes to offer a multi-channel, start to finish stage for its customers. “Prozo is solving a key problem in a very large market,” said Nikhil Vora, founder Sixth Sense Ventures. “By 2025, India’s e-commerce market is expected to cross $200 billion, and there would be nearly 340 million e-commerce customers. Hundreds of enterprises, thousands of D2C brands and over a million SMEs will compete to serve this humongous customer base.”