Gati to dive deeper into ecommerce by investing in logistics start-up

Legacy logistics company Gati Ltd. has revealed that it will be investing in a logistics start-up. The move seems to be with an eye on the booming ecommerce industry. The company also recently announced the launch of its mobile app, to keep up with the fast changing times.

Dhruv Agarwal, chief strategy officer at Gati says, “Today, the start-up environment in the country is solving real business problems using technology and at a rapid pace. We are engaging with the start-ups that are aligned with our business to make a strategic investment. These alliances and investments will help us build capability and capacity.”

The company had planned to raise capital through the issue of securities.

Gati in the ecommerce world

The company has an active ecommerce wing, Gati E-connect. E-connect has brought in a good amount of  dough. It has made nearly Rs. 128 crores in the previous financial year. Gati is thrilled enough with this performance to contemplate launching its own marketplace. The company plans to take on the exotic and niche market.

Tracking ecommerce Logistics

Most of the leading marketplaces prefer to take care of their logistics needs in-house. Flipkart has eKart, and Snapdeal has GoJavas. Apart from that, the leading logistics companies that cater to ecommerce include Delhivery, Ecom Express, BlueDart, and Swiggy to name a few.

India Post has recently joined the gang of logistics options for online sellers. Indian Railways and Delhi Metro are also providing interesting services. However, it is no easy walk, and many have learnt this the hard way. There is immense scope in the logistics industry. The road is not smooth, but riddled with potholes and traffic signals!