Kale Logistics Solutions, an Indian startup specializing in vertical SaaS solutions for the logistics industry, has successfully secured $30 million in fresh funding. This funding round marks a significant step for the 14-year-old startup as it sets its sights on expanding its presence in both the U.S. and Europe.
Leading the Series B funding round is Creaegis Advisors, a private equity fund based in Bengaluru. This development comes after the startup had previously raised $5 million in a Series A round in 2020. Kale Logistics’ notable investors include Inflexor Ventures, a tech-focused VC firm, as well as its founding angels, Narendra Kale and Vipul Jain.
Traditionally, managing logistics and shipping cargo involves complex coordination among multiple stakeholders, resulting in extensive paperwork. Kale Logistics aims to revolutionize these processes by offering a suite of cloud-based software tools that enable seamless digital data exchange among all parties involved in cargo and logistics operations.
Rajesh Panicker, the co-founder and COO of Kale Logistics, explains that they have developed standardized solutions and interfaces for airlines, customs, and other key players, which are integrated into a platform used at airports and ports. This platform streamlines the exchange of data, eliminating the need for manual duplication for various purposes.
Panicker emphasizes that nearly 80% of the data exchanged in logistics is standardized and can be reused throughout a cargo’s journey from source to destination. Kale Logistics’ flagship solution, the Cargo Community Platform, allows participants such as freight forwarders, ground handling agents, and customs brokers to easily share their data without the burden of redundant manual processes.
In recent years, regions like India, Europe, and the U.S. have introduced stringent regulations for cross-border trade. Kale Logistics sees these regulatory changes as an opportunity to expand its operations, especially as businesses involved in cross-border transactions increasingly seek digital solutions to monitor their cargo movements.
Kale Logistics currently operates at over 100 airports and ports worldwide, serving clients in 36 countries, including cargo companies, airports, and seaports. The startup began its journey in India and expanded to the Middle East, Africa, the U.S., and European markets.
With the new funding, Kale Logistics plans to further expand its presence, increase its workforce, invest in research and development, and enhance its product with additional features.
According to Vipul Jain, Chairman of Kale Logistics, “This is our second fundraising with an external investor, and we are happy to partner with Creaegis because of the alignment of vision for the business, their record and understanding of the SaaS and tech products space globally. We are confident they will add value to the company as we shift gears towards a faster growth trajectory.”
While the logistics tech startup market is growing rapidly with new entrants, Kale Logistics believes that it currently faces limited competition. Rajesh Panicker notes that the global logistics industry is undergoing a significant digital transformation, and Kale Logistics is at the forefront of this change by digitizing and automating cargo operations in airports and seaports.
Kale Logistics has established offices in the UAE, Kenya, the Netherlands, and the U.S., in addition to its presence in India.
Investors in India have shown increasing interest in logistics management. According to Tracxn, equity investments in Indian logistics tech startups surged by nearly 200% to $180.8 million in Q2 2023, compared to $60.5 million in Q3 2022. In the current third quarter, investments have already reached $42.4 million. In contrast, global funding for the logistics tech sector dipped by 14% to $1.2 billion in Q2 2023 from $1.4 billion in Q3 2022, with $412.8 million invested so far in the current third quarter.
