Pickkup, the Hyderabad-based last mile delivery startup, is raising about Rs 7 crore as funds to expand operations this year. The three-year old startup - which services doorstep delivery of consumer products for businesses, aggregators and ecommerce companies such as Future Retail, Delhivery and Vijetha Supermarket in Hyderabad - is expanding to Bengaluru, Chennai, Vijayawada and Visakhapatnam over the next few months.
“We are trying to raise a seed capital of Rs 4-6 crore in the coming months which will be used to scale the business, expand operations and hire new fleet. We already have order commitments from our existing partners like Future Retail, bakery outlets and several e-commerce platforms in Bengaluru and Chennai where operations are set to take off,” said Hemanth Chandra, founder of Pickkup.
Pickkup will launch operations in Bengaluru in April, in Chennai and Vijayawada in June and by October in Visakhapatnam. The expansion plan comes in the wake of 20X growth in delivery volumes registered by the company post Covid-19 outbreak. The growth in order volumes particularly came from retail and e-commerce players, the company said.
“We are in advanced level discussions with venture capital firms such as Venture Gurukool to close the round,” said Chandra.
Launched in 2018, Pickkup had clocked a revenue of Rs 10 lakh in the first year of operations. The company is closing the ongoing fiscal at about Rs 1.6 crore.
“With plans to have operations in five cities, we aim to reach a revenue of Rs 10-12 crore by the next financial year. Over the next two fiscal years, Pickkup aims to have operations in eight cities with an expected revenue of Rs 50 crore,” Chandra said.
About 90% of the company’s order volumes come from enterprises and the rest 10% comes from consumers. The company is the sole delivery partner for Future Retail that owns Big Bazaar, Foodhall and fbb.
Pickkup is in advanced talks with food and lifestyle retailer Spencer’s Retail which is expected to be on board by March end. The company said it has also signed a master service agreement with Amazon and will start deliveries for the marketplace in April.
Pickkup is expected to achieve break-even by the June quarter and gross profitability by 2021.
“We are trying to raise a seed capital of Rs 4-6 crore in the coming months which will be used to scale the business, expand operations and hire new fleet. We already have order commitments from our existing partners like Future Retail, bakery outlets and several e-commerce platforms in Bengaluru and Chennai where operations are set to take off,” said Hemanth Chandra, founder of Pickkup.
Pickkup will launch operations in Bengaluru in April, in Chennai and Vijayawada in June and by October in Visakhapatnam. The expansion plan comes in the wake of 20X growth in delivery volumes registered by the company post Covid-19 outbreak. The growth in order volumes particularly came from retail and e-commerce players, the company said.
“We are in advanced level discussions with venture capital firms such as Venture Gurukool to close the round,” said Chandra.
Launched in 2018, Pickkup had clocked a revenue of Rs 10 lakh in the first year of operations. The company is closing the ongoing fiscal at about Rs 1.6 crore.
“With plans to have operations in five cities, we aim to reach a revenue of Rs 10-12 crore by the next financial year. Over the next two fiscal years, Pickkup aims to have operations in eight cities with an expected revenue of Rs 50 crore,” Chandra said.
About 90% of the company’s order volumes come from enterprises and the rest 10% comes from consumers. The company is the sole delivery partner for Future Retail that owns Big Bazaar, Foodhall and fbb.
Pickkup is in advanced talks with food and lifestyle retailer Spencer’s Retail which is expected to be on board by March end. The company said it has also signed a master service agreement with Amazon and will start deliveries for the marketplace in April.
Pickkup is expected to achieve break-even by the June quarter and gross profitability by 2021.
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