WIZ Freight acquires the Indian operations of M+R

WIZ Freight, the two-year-old Chennai-based digital cross-border supply chain start-up, has acquired the Indian operations of Swiss company M+R for an undisclosed sum. About 450 M+R employees in India are onboarded to Wiz Freight, said Ramkumar Ramachandran, co-founder and chairman of WIZ Freight. The integration should take place within the next 30 days, he said.

“We plan to acquire three or more companies to expand our presence,” he added.

Ramkumar Govindarajan, co-founder and CEO of WIZ Freight, said the company has planned an investment of around ₹300 crore over the next two years for R&D and a similar amount for inorganic investments.

Started with a handful of people, the start-up now has a revenue rate of ₹1,500 crore with around 6,000 clients including Mahindra Group, Adani, Marico, Chettinad and Ramco and 850 employees in 22 offices in India, and 70 outside the country, he says.

Extension of the logistics space

In March 2022, WIZ Freight raised ₹275 crore in a mix of equity and debt led by Tiger Global, and participation from Axilor Ventures, Foundamental, Arali Ventures, Stride Ventures and Alteria Capital. It was the largest A-series in the logistics space in India.

As part of its expansion, the company has set up the largest technology and R&D center of its kind in the city. It is claimed to be Asia’s largest R&D center dedicated to cross-border shipping technology. Set up with an initial capital expenditure of ₹30 crore, the center will facilitate technological innovation in the shipping industry to reduce costs, provide accurate end-to-end visibility, enable better planning and execution of the upstream and downstream supply chain and minimize the carbon footprint.

The R&D center will employ a 300-member team across data science, analytics, software and logistics, Govindarajan said.

Technology Driven Innovation

“We will use AI/ML-based technology applications to predict estimated time of arrival (ETA), intelligent shipment routing, dynamic pricing, supply/demand forecasting and solutions. OCR for Document Extraction Blockchain-based applications will help digitize shipping documents and provide end-to-end visibility, carbon footprint calculation, and trade finance execution. disrupt current industry standards through technology-driven innovation and bring greater efficiency that will benefit our customers in their business operations.The Technology and R&D Center will go a long way in supporting our ambition to be the most innovative, technology-driven, cross-border supply chain management company,” he said.

Govindarajan said the company is valued at around ₹5,000 crore. There is a proposal to raise around $150 million in the coming months, he said.

The company makes about 6,000 shipments per month, with sea shipping contributing about 70% and air the balance 30%. For customers, it can handle things like digital full container load shipping, less than container load shipping, and customs clearance. “By using the digital form, we save 20-30% of the costs, which we pass on to our customers,” he said when asked what benefit does a customer get from using the traditional method and the company’s digital platform to ship cargo. .

Published on

August 24, 2022

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