Reverse SCM pulls Reliance VC funding

MUMBAI, INDIA: Reliance Venture Asset Management, an arm of the Reliance ADA Group, has successfully completed the first round of venture funding in Reverse Logistics Co, a technology enabled end-to-end reverse supply chain solutions company. The announcement is in line with the company's recent rebranding and widening focus on investing in disruptive and sustainable business models with a sector agnostic philosophy. Kleiner Perkins Caufield & Byers and Sherpalo are co-investors in this round of funding in Reverse Logistics Co. along with Reliance Venture Asset Management.

Reverse logistics refers to the backward supply chain network where a product moves from the end consumer to the manufacturer for reuse, disposal or surplus sale purposes with the rationale to increase overall efficiencies. In developed countries, the reverse supply chain management is outsourced and focused to increase the overall shareholder value. However, India is still near the bottom when it comes to supply chain efficiencies - estimates suggest that three per cent of its GDP is lost to supply chain inefficiencies and low compliance with the government's e-waste regulations. Hence with its growing importance, Indian companies are now looking to manage this network as a strategic and critical business area. According to market studies, the Indian reverse logistics industry is pegged at $10-15 billion which includes the secondary market supplying spares and second hand materials.

Founded in 2008, Reverse Logistics Co. uses its proprietary technology to help its customers reduce supply chain costs by over 25 per cent, increase asset recovery by over 100 per cent, improve productivity by over 10 per cent, and get a 100 per cent customer satisfaction while growing profitability exponentially, adds a press release.

Said Harshal J. Shah, CEO, and Reliance Venture Asset Management on the development, "The reverse logistics space is a fairly untapped but promising sector, and will revolutionize efficiency levels of the fragmented Indian supply chain. As an opportunistic investor, we see an immense potential in the industry which is emerging to be an essential part of the business supply chain network across the manufacturing and services industries. Reverse Logistics Co. with its expert management backing will clearly contribute to the India growth story and compete with global compatriots and we are excited to partner them."

Sandeep Murthy, Partner, Sherpalo Ventures and Kleiner Perkins Caufield & Byers said, "Reverse Logistics Co is a great example of the next breed of companies that will emerge in India. They are effectively leveraging technology to drive value and cost savings while catering to a very large unmet customer need. We are excited to join Hitendra and the Reverse Logistics team in building a global reverse logistics business."