Digital payments and commerce platform Paytm is reportedly investing $10 million in the first round of institutional funding for data analytics firm LogiNext, in an effort to bring greater efficiencies to its delivery vertical.
The investment is a part of Paytm’s plan to pump about $150 million in over a dozen startups, a company executive told TOI. Paytm’s investment in early-stage startups would be in the $10-15 million range while a select few may see it invest larger amounts as well, the executive said.
Kiran Vasireddy , senior VP (business), Paytm reportedly said that the reason behind backing LogiNext was to add muscle to the firm’s logistic piece. Backed by Ant Financial, an affiliate of the Alibaba Group, Paytm has been pushing its commerce platform after having started off as a mobile recharge player and now competes with the likes of Flipkart, Amazon and Snapdeal.
LogiNext, founded by Dhruvil Sanghvi and Manisha Raisinghani in 2014, was a part of the first batch of GenNext Innovation Hub, an incubator set up by the Mukesh Ambani-led Reliance Industries along with Microsoft Ventures. At present, LogiNext serves customers in the medium and large enterprises.
The data analytics startup received a funding of $500,000 from Indian Angel Network in April this year. LogiNext uses technology to provide real-time visibility and optimization solutions to logistics companies.
This makes Paytm a direct competitor to companies like Sodexo, Ticket Restaurant, Zeta among others
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