Supply Chain & Storage Startup Prozo Garners INR 76 crore from Sixth Sense Ventures & Others
According to Jakhar, Prozo plans to use the new cash to grow into other regions, recruit clients, invest in technology, and hire more employees.
The investment was advised by Dexter Capital Advisors.
Prozo offers its customers, usually direct-to-consumer (D2C) businesses, a supply chain solution that allows them to duplicate Amazon Prime's same-day or next-day delivery guarantee.
A pay-per-use plan is available from the firm.
In a statement, Prozo founder Ashvini Jakhar said, “Many years back, the product was the differentiator, then branding became a differentiation, in the internet era ratings and reviews became a differentiation, then pricing became a differentiation. But private labels killed the pricing differentiation. Today, the true differentiation is fast fulfilment. What started as "good to have" has become an important differentiation. Today, the supply chain has become a revenue enabler. Your distribution is your differentiation.”
He further said, “Amazon has become the chosen destination for the top 10 brands and small as well as big brands have found it difficult to compete with the ecommerce platform’s private labels, he said. This has made brands start their own e-commerce portals and invest in other supply chains. Prozo will start providing one-day delivery to most regions in the country.”
He added, “we are covering the country from the perspective of four zones - North, South, East, West. To cover the entire country from a one or two-2 day delivery standpoint, you need a minimum of 8 locations. We can do even better with 16 locations.”
Founded in 2016, the firm offers warehouse, technology, freight, and distribution services on more than 20 online marketplaces.
Reliance JioMart, WinMagic Toys, McGraw Hill, Lavie, and other D2C brands are among the clients spanning more than ten categories.
He underlined, "Between the product and the market, there is a lot of noise referring to the various channels that brands need to interact with for e-commerce. There is Shiprocket for freight, for offline it is separate, B2C and B2B is different. But Prozo is end-to-end. We absorb all the noise."
A warehouse management system, freight recommendation, unified order management system, transport management system, intelligent inventory placement, and insight and analytics solutions are part of the company's technological stack.
Jakhar added, “Most of the supply chain services are not pay per use. Our services sometimes start at Rs 2 or Rs 3 per month per product inventory. Brands can move very close to the consumer. We are doing all of this on a pay per use, plug and pay per use basis.”
Sixth Sense Ventures founder Nikhil Vora stated, “Prozo is solving a key problem in a very large market. By 2025, India’s e-commerce market is expected to cross $200 billion, and there would be nearly 340 million e-commerce customers. Hundreds of enterprises, thousands of D2C brands and over a million SMEs will compete to serve this humongous customer base.”
Prozo has a 250-person workforce that is expanding at a rate of 40% each month.
Prior to this round, Earlsfield Capital Partners LLP and other angel investors had invested in Prozo.