Shift Freight plans to raise USD 20-30 mn by Q1 of next fiscal; dilute 10-15 pc stake
Avinash Raghav, Co-Founder & MD, Shift Freight
Mumbai: On-demand relocation services provider Shift Freight plans to raise USD 20-30 million by the first quarter of the next fiscal by diluting 10-15 per cent stake to drive its growth plans, which include both increasing number of per day movements as well as expanding workforce. The Noida-based startup currently has presence across 25 cities and carries out around 70 movements per day with majority of them being inter-city.
The company’s founder-CEO Avinash Raghav also said that Shift Freight, as part of its long-term plans, aims to become a Rs 1,000 crore-revenue company with 2,000 movements per day that would help it garner 5 per cent market share. “As part of our strategy, we will be going ahead with our Series A funding plan, wherein our target is to raise capital to the tune of USD 20-30 million by diluting 15-20 per cent stake in the company,” Raghav said.
He said that the company is looking to close the deal by the first quarter of the next fiscal and to achieve its objective it has already initiated the process.
“We have already roped in some legal firms and are in touch with the investment banking firms to raise funds in the stipulated time-frame,” Raghav added.
Stating that the majority of the proposed capital would go into expansion including deepening market presence, he said a part of it would also be deployed to scale up the workforce, which is expected to be nearly fourfold to 200 from 45 people now. “We are still doing between 70- 75 orders per day. Our target is to reach 200 movements per day by this fiscal year.
Besides, we are also looking to establish our presence to 50 cities by March 2022 from 25 cities at present,” he said. Raghav said that he has injected Rs 1.5 crore in the business last month to ensure the growth momentum continues, adding that, “once we reach 100 orders per day, which is expected to be achieved by December, our valuation will be almost USD 300 million.” Shift Freight is in talks with some of the electric vehicle makers and some of the EV technology companies, who are promoting these vehicles to provide its partners soft loans and facilitate them in procuring EVs.
“In the next 5-6 months our partner could be seen using more EVs than the CNG or diesel vehicles, especially the ones falling in the 250-500 cubic feet (CFT) capacity category.
This is the size of vehicles we are targeting as the maximum movement happens. The maximum movement happens in this capacity,” he added.
“The most established player in the industry, who set up business 25 years ago is currently doing 300 movements per day. Our target is to have 2,000 movements per day In five years from now and an annual revenue of Rs 1,000 crore with some 5 per cent market share.
And this target is doable considering the pace of our growth,” he said.
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