Building Operating System For Global Trade
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Co-founded in June 2015 by Soham Chokshi and Dhruv Agarwal, Shipsy has been said to be bringing all stakeholders of the international logistics ecosystem on a single platform.
The Gurugram-headquartered software company is able to get real-time delivery updates from devices without Internet; by using artificial intelligence (AI)-based geo-coding.
The chief executive officer and co-founder of the modular, software-as-a-service (SaaS) platform Shipsy, Chokshi, told Entrepreneur India, “The approach is to create a strong SaaS workflow management platform that allows network participants to collaborate and work together, reducing process holdups, enhancing efficiency and bringing transparency.”
With its modules catering to logistics/parcel delivery, exports/imports, banking and insurance, auto manufacturing, and electronics supply chains, the platform tracks over 10 per cent of India’s containerized move with over 1 lakh containers per month.
Chokshi while talking about his business model added, “It’s not just a software, Shipsy’s platform enables clear business use cases that give measurable outcomes: either helping shippers reduce their freight costs and improve outcome or helping the logistics company get more business by improving the type of movements they can do as we firmly believe in pay-as-you-scale.”
The SaaS workflow management platform maintains that it has recently raised pre-Series A round of funding by Info Edge and Sequoia Capital and plans to target South Asia, next.
The logistics industry has seen an outburst of technology solutions, however, technology adoption numbers are poor mostly because of the changing user behavior, and building a robust system that caters to a diversified user base like India, requires continuous innovation.
The entrepreneur keenly shared, “Our startup aligns with the Indian government’s vision of Atmanirbhar Bharat and Vocal for Local as Shipsy has extended its platform for free of cost to the small and medium enterprises (SMEs)/micro small and medium enterprises (MSMEs) in India under its network module and will provide them access to utilities to connect with these verified agents and get access to very competitive rates as well as much better service levels due to these vendors being verified by the platform.”
The global logistics market was valued at $7,641.20 billion in 2017 and is projected to reach $12,975.64 billion by 2027, registering a compound annual growth rate (CAGR) of 6.5 per cent from 2020 to 2027.
To which, the co-founder strategically plans and elaborates that Asia-Pacific dominates the global market in terms of revenue, accounting for more than 34 per cent share of the global market as logistics is widely used across industry sectors such as high-tech machines, automobile sector, pharmaceutical sector, and others.
Some of the major factors which are driving the market are global trade activities of the developing economies, global logistics infrastructure, and achievement in the information technology and transportation sector.
“SaaS overall is a massive multi-trillion dollar opportunity globally. There is so much legacy software that has to be rewritten to a SaaS framework. So many companies will come to make SaaS-based products for industry-specific use cases. The market is also growing very fast at the north of 20 per cent year-over-year (y-o-y),” Chokshi further explained.
On the newly launched network side, the company has shared to have registered more than 5,000 SMEs/MSMEs with strong engagement on the platform and plans to onboard 20,000 by the end of FY22.