Shift Freight plans to raise $ 20 million to $ 30 million by the first quarter of next fiscal year; dilute 10-15 pc stake
Mumbai, October 10 (PTI) On-demand relocation service provider Shift Freight plans to raise $ 20 million to $ 30 million by the first quarter of next fiscal year by diluting 10-15% of its stake to boost its plans to growth, which includes both an increasing number of movements per day as well as an increase in the workforce.
The Noida-based startup currently has a presence in 25 cities and makes around 70 trips per day, the majority of which are intercity.
Speaking to PTI, company founder and CEO Avinash Raghav also said that Shift Freight, as part of its long term plans, aims to become a Rs 1,000 crore company with 2,000 moves. per day, which would help it achieve 5 percent market share.
“As part of our strategy, we will continue our Series A financing plan, in which our objective is to raise capital to the tune of 20 to 30 million dollars by diluting 15 to 20% of the capital of the company”, a said Raghav. .
He said the company was looking to close the deal by the first quarter of next fiscal year, and to meet its goal, it had already started the process.
“We have already used some law firms and are in contact with investment banking firms to raise funds on time,” Raghav added.
Stating that the majority of the proposed capital would be for expansion, including deepening the market presence, he said part of it would also be deployed to increase the workforce, which should be almost quadruple to 200, compared to 45 people currently.
“We still make between 70 and 75 orders per day. Our goal is to achieve 200 movements per day by this exercise. In addition, we are also looking to establish our presence in 50 cities by March 2022 from 25 cities currently, ”he said. Raghav said he injected Rs 1.5 crore into the business last month to ensure the continued growth momentum, adding that “once we reach 100 orders per day, which should be reached by December, our valuation will be close to $ 300 million. . “
Shift Freight is in talks with some electric vehicle manufacturers and electric vehicle technology companies, which are promoting these vehicles to provide partners with low-interest loans and make it easier for them to purchase electric vehicles.
“Over the next 5-6 months, our partner could be seen using more electric vehicles than CNG or diesel vehicles, especially those in the 250-500 cubic foot (CFT) capacity category. This is the size of the vehicles we are targeting when the maximum movement occurs. The maximum movement occurs in this capacity, ”he added.
“The most established player in the industry, who started his business 25 years ago, currently performs 300 movements a day. Our goal is to have 2,000 movements per day in five years and an annual turnover of Rs 1,000 crore with around 5% market share. And this goal is achievable given the pace of our growth, ”he said. PTI IAS YEARS
Disclaimer: – This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI