Logistics is complicated in India, a fragmented market that struggles to streamline organizational processes, including B2B payments. One startup has just launched in the country in an effort to sort out some of the friction in logistics, and that includes payments issues.
Reports on Thursday (June 2) said 4TiGO debuted in Bengaluru this week, its latest market after expanding throughout south India. In an interview, 4TiGO Cofounder and CEO Anjani Mandal said the logistics market is approaching a $300 million valuation mark in India, but that it is "fragmented."
"It has payments systems, needs technology, innovation, understanding of business, and it was a jigsaw puzzle that needed to be solved," the executive said.
To tackle the payments puzzle piece of logistics, 4TiGO reportedly struck a partnership with the Federal Bank to implement B2B payments infrastructure. The bank will also launch a program to provide working capital for participants in the logistics industry, reports said.
The logistics market is a hot sector for startups and major corporations in India as innovators look to sort out the discombobulated space. Last year, Amazon announced the launch of a B2B service in India to provide logistics services to online sellers.
But new businesses are emerging with venture capital funding to provide their own solutions to logistics problems in India. Few, however, have focused on the payments side of the logistics segment until 4TiGO.