Bengaluru-based logistics startup Kale Logistics Solutions has raised $30 million in a recent funding round as it looks to expand its operations in the U.S. and Europe. The startup, which offers a suite of cloud-based software tools to streamline logistics and shipping activities, aims to eliminate paper-based processes in these operations. The funding was led by private equity fund Creaegis Advisors and follows a $5 million Series A round in 2020. Kale Logistics plans to use the funding to increase its presence and hire more staff. It also aims to invest in research and development to enhance its product with more features.
Kale Logistics’ platform, known as the Cargo Community Platform, enables all participants in the logistics and shipping industry to share digital data without the need for manual reproduction. This includes freight forwarders, ground handling agents, and customs brokers. By standardizing and digitizing the data exchange process, Kale Logistics aims to streamline operations and improve efficiency.
The startup currently has a presence in over 100 airports and ports globally, serving clients in 36 countries. It started its journey in India and expanded to the Middle East and Africa before venturing into the U.S. and European markets. According to Rajesh Panicker, co-founder and COO of Kale Logistics, the company has expanded to 10 different airports and ports in the U.S. and 36-38 airports in Europe. The additional funding will help further expand its operations in these regions.
Kale Logistics sees great potential for growth as regions like India, Europe, and the U.S. implement stricter regulations for cross-border trade. The startup believes that its digital solutions for monitoring cargo movement align well with the increasing demand for automation in the logistics industry. As Panicker notes, there is a lot of impetus, both internal and external, to automate these processes, and Kale Logistics is in the right place at the right time.
The logistics tech startup market is expanding rapidly, but Panicker believes that Kale Logistics does not face significant competition at the moment. While several players offer specific solutions for airlines or truck management, Kale Logistics aims to digitize and automate end-to-end cargo operations in airports and seaports. The startup’s Cargo Community Platform and suite of SaaS solutions position it as a category-defining player in the market.
The new funding round with Creaegis Advisors marks Kale Logistics’ second external investor. The startup values the partnership for its alignment of vision and understanding of the SaaS and tech products space. Vipul Jain, chairman of Kale Logistics, expresses confidence that the partnership will add value to the company as it aims for faster growth and expansion.
Investor interest in logistics tech startups in India is on the rise. According to Tracxn, investments in Indian logistics tech startups nearly tripled in Q2 2023, reaching $180.8 million, compared to $60.5 million in Q3 2022. The current third quarter has also seen significant investment, amounting to $42.4 million. In contrast, global funding in the logistics tech domain decreased by 14% in Q2 2023, with $1.2 billion invested, compared to $1.4 billion in Q3 2022. Kale Logistics’ successful funding round reflects the growing interest in the Indian logistics tech sector.
With its recent funding and plans for expansion, Kale Logistics aims to solidify its position as a leader in the logistics tech industry. By offering innovative solutions and embracing digital transformation, the startup seeks to address the increasing demand for automation and end-to-end visibility in the global logistics market.
