Electric vehicle fleet and logistics startup Tocal has raised Rs 9 crore in seed funding. The round was led by XB Group, parent of K-Indev Logistics. Navyug Global Ventures and investor Nivetha Muralidharan also joined. The funding shows growing interest in clean mobility delivery inside cities.
Funding Plans
The new funding will be used to grow the company beyond Bengaluru into other big city clusters. The plan includes setting up fulfillment hubs in key locations, adding more electric vehicles, improving fleet and warehouse software, and investing in enterprise sales partnerships with e-commerce and quick-commerce firms.
Tocal was started in 2021 by Dhairyasheel Deshmukh and Hidayathulla Shareef. It works at the point where logistics and zero-emission delivery meet. The company model brings together local micro-warehouses, special driver networks, and its own tech systems into one business-to-business delivery setup. This removes the need for consumer brands to deal with many different third-party vendors.
Alongside the equity financing, Tocal has entered into a strategic joint venture with K-Indev Logistics to build a comprehensive intra-city logistics framework. Under this operational arrangement, K-Indev Logistics will offer its institutional expertise in micro-warehousing networks and broad enterprise accounts, while Tocal will integrate its technology platform and localized electric delivery fleet.
Why Fulfillment Matters
"This investment reinforces our conviction that India's commerce ecosystem requires more than electric transportation; it requires modern, technology-driven logistics infrastructure," said Dhairyasheel Deshmukh, Founder and Chief Executive Officer of Tocal.
"Our vision is to build the operating backbone that enables brands to store, fulfill and deliver products faster and in the most sustainable way. Together with K-Indev Logistics, we are creating an integrated platform that combines fulfillment through strategically located micro-warehouses with a tech-enabled EV fleet to support the next phase of India's commerce growth."
The fundraising occurs amid heightened corporate demand for fast, predictable green shipping options as commercial clients encounter stringent corporate environmental mandates alongside strict consumer delivery expectations.
However, regional mid-mile and last-mile operators frequently struggle with low vehicle asset utilization rates and fragmentation within their warehouse networks, creating significant margin pressures.
By combining local storage units with its electric delivery vehicles, Tocal works to control the full delivery process and reduce the overall cost per shipment for large companies. In the next four to five years, the Bengaluru-based firm plans to expand to more than 15 tier-1 and tier-2 cities, grow its electric fleet to 20,000 vehicles, set up 75 fulfillment centers, and add over 1,000 retail and digital brands to its network.
What is Tocal
Tocal is a logistics and technology company that offers electric vehicle delivery and warehousing for businesses. It manages dark stores and micro-fulfillment centers with its own software for order allocation and route planning. Tocal competes with Zypp Electric, Shadowfax, LoadShare Networks, and Fyn Mobility in the EV logistics sector.
