Reliance Venture Asset Management, Kleiner Perkins Caufield & Byers and Sherpalo Ventures Close Series-A Round Funding in Reverse Logistics Co.
Reliance Venture Asset Management India’s first and largest corporate venture capital firm and an arm of the Reliance ADA Group, today announced that it has successfully completed the first round of venture funding in Reverse Logistics Co, a technology enabled end-to-end reverse supply chain solutions company. The announcement is in line with the company’s recent rebranding and widening focus on investing in disruptive and sustainable business models with a sector agnostic philosophy.
Founded in 2008, Reverse Logistics Co. uses its proprietary technology to help its customers reduce supply chain costs by over 25%, increase asset recovery by over 100%, improve productivity by over 10%, and get a 100% customer satisfaction while growing profitability exponentially.
Said Harshal J. Shah, CEO, and Reliance Venture Asset Management on the development, “The reverse logistics space is a fairly untapped but promising sector, and will revolutionize efficiency levels of the fragmented Indian supply chain. As an opportunistic investor, we see an immense potential in the industry which is emerging to be an essential part of the business supply chain network across the manufacturing and services industries. Reverse Logistics Co. with its expert management backing will clearly contribute to the India growth story and compete with global compatriots and we are excited to partner them.”
Hitendra Chaturvedi, Managing Director and CEO, Reverse Logistics Co. said, “We are thankful to Reliance Venture Asset Management and our other investors for recognizing the potential of this industry and Reverse Logistics Co.’s attempt to make reverse supply chain truly mainstream. With industries across sectors turning to cost optimization with the intent to remain eco-friendly, we will continue to offer optimum solutions to bridge the gap between the end consumer and the manufacturer.”
Sandeep Murthy, Partner, Sherpalo Ventures and Kleiner Perkins Caufield & Byers said, “Reverse Logistics Co is a great example of the next breed of companies that will emerge in India. They are effectively leveraging technology to drive value and cost savings while catering to a very large unmet customer need. We are excited to join Hitendra and the Reverse Logistics team in building a global reverse logistics business.”
Reverse logistics refers to the backward supply chain network where a product moves from the end consumer to the manufacturer for reuse, disposal or surplus sale purposes with the rationale to increase overall efficiencies. In developed countries, the reverse supply chain management is outsourced and focused to increase the overall shareholder value. However, India is still near the bottom when it comes to supply chain efficiencies – estimates suggest that 3% of its GDP is lost to supply chain inefficiencies and low compliance with the government’s e-waste regulations. Hence with its growing importance, Indian companies are now looking to manage this network as a strategic and critical business area According to market studies, the Indian reverse logistics industry is pegged at 10-15 billion USD which includes the secondary market supplying spares and second hand materials.