Pune-based logistics technology company CargoFL has successfully raised Rs 6.75 crore in a seed funding round. The round was led by YourNest Venture Capital, which contributed Rs 4.7 crore. Other contributors include Real Time Angel Fund (RTAF) and Peaceful Progress Angel Fund, each investing Rs 50 lakh, Sanchi Connect Accelerator with Rs 25 lakh, and Rs 80 lakh from prominent angel investors like Dinesh Chandra Agarwal (IndiaMART CEO), Dinesh Gulati (IndiaMART COO), Murugavel Janakiraman (Bharat Matrimony Founder), and Rajesh Sawhney (GSF Accelerator Founder).
Strategic Allocation of Funding
CargoFL plans to use this funding to expand its reach and enhance its product capabilities. The allocation includes:
- 40% for Sales Expansion: The company aims to build a strong sales engine to drive growth in India, Southeast Asia (SEA), Middle East and North Africa (MENA), and North America.
- 40% for Product Development: This includes improving logistics and supply chain automation capabilities.
- 20% for Client Onboarding: CargoFL will focus on making its implementation process seamless for clients across different regions.
To support this growth, CargoFL is hiring for key senior roles, including Chief Product Officer, Chief Technology Officer, Chief Finance Officer, senior tech architects, and business development executives.
Journey and Evolution
Founded in 2017, CargoFL began by offering transport management software for fleet owners. Over time, it has transformed into a comprehensive AI-driven platform designed for enterprises in sectors like retail, pharmaceuticals, and manufacturing. The company currently serves over 25 large enterprises, including Puma, Godrej, Schaeffler, Metro Brands, and Decathlon.
With this funding, CargoFL aims to achieve an annual recurring revenue (ARR) of $3 million within 18-24 months. The company plans to onboard more than 25 new customers in India and expand its reach to international markets.
Plans for the Future
CargoFL’s Co-founder and CEO, Deepesh Kuruppath, shared the company’s vision “We plan to allocate funds to improve our product, enhance the sales engine, and simplify customer onboarding. Our goals include refining the user experience and developing an AI co-pilot to optimize logistics and supply chain operations. We also aim to expand our presence in SEA, MENA, and North America through strategic partnerships and a scalable sales engine.”
Wasim Khan, Co-founder and COO, added “Our focus is on hiring skilled business analysts and subject matter experts to enhance implementation efficiency. We also aim to identify critical AI use cases in supply chain management to create innovative solutions that strengthen our competitive edge.”
YourNest’s Support and Vision
Girish Shivani, General Partner at YourNest Venture Capital, expressed confidence in CargoFL’s potential: “CargoFL’s AI-powered platform and experienced team make it a standout in the logistics sector. Its dual strategy of focusing on India and expanding globally positions it for remarkable success. The company’s innovative AI Box solution and transport management software offer cost savings of 4-11% while reducing environmental impact, transforming logistics into a competitive advantage.”
CargoFL plans to launch an intelligent supply chain assistant to provide actionable insights for planning, execution, and monitoring. The company is also exploring new markets with pilots in Australia and Malaysia and setting up sales channel partners in SEA, MENA, and North America.
CargoFL Unique Offering
CargoFL’s platform acts as an operating system for logistics, enabling seamless collaboration among stakeholders like carriers, distributors, and suppliers. Its AI Box toolkit offers specialized solutions, making it a leader in the growing $13 billion transport management system market and the $4.5 billion AI supply chain market.
The global AI supply chain market is expected to grow at a compound annual growth rate (CAGR) of 42.7%, reaching $157 billion by 2033. CargoFL’s innovative approach positions it as a key player in this rapidly expanding sector.
Beginning of CargoFL
CargoFL journey began when CEO Deepesh Kuruppath recognized the need for digitization in India’s logistics sector during a consulting project with a Pune-based transporter. This realization led to the creation of a platform that has since evolved into an enterprise-focused solution, transforming logistics operations with AI-powered innovations.
With its cutting-edge technology and strategic vision, CargoFL is set to redefine global supply chain management. The company’s focus on sustainability, cost efficiency, and innovation ensures it remains a leader in the logistics industry.
