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DOT, green mobility logistics solutions provider, will invest $15 million (₹106 crore) on its expansion to cover 600 towns and cities by 2020.
The Gurugram-based green start-up, founded in 2015, is also planning overseas expansion, Vineet J Mehra, Founder-Managing Director, told BusinessLine.
With its green two- and three-wheelers, the company plans to reach Canada in June and South-East Asia during the year, followed by China in 2020.
Overseas shores
DOT intends to expand internationally with its exclusive licensed patents on energy storage, robotics for delivery and micro grids. “We have embarked on launching energy storage and micro-grid projects in Canada using their renewable energy production and have plans by 2020 to launch our first project as per a customer-centric plan. In Canada, we expect to launch ride-sharing for specific communities on a subscription model using electric vehicles from GM and Nissan. Orders have been placed in this regard,” he added.
In Thailand, Vietnam, Malaysia and Singapore, he said, DOT is looking to go with a confirmed order book on delivering groceries, e-commerce, and be a third party contractor using electric two-wheelers for a leading logistics company.
In India, Mehra said, DOT is expanding presence from 20 towns and cities now to nearly 600 across 17 States by 2020. “For this ambitious expansion, we will need around 40,000 two- and three-wheelers as e-taxis. We have tied up with a Gurugram-based manufacturer to supply these electric vehicles in a phased manner.”
Funding plans
Asked how the company will fund its plans, Mehra said the start-up is already generating cash. Together with this internal accrual, it will also raise equity and debt as and when needed. “We also have petrol-run vehicles for temporary use.”
He said the company has seen a healthy 26 per cent month-on-month growth for revenues vis-à-vis 8-10 per cent sector growth over medium-term.
The current size of the last mile logistics market is more than $1 billion in India and is to expected to grow to over $3 billion by 2022.
“DOT offers mass employment opportunities to individuals in Tier-1 to -3 towns and cities. “The riders at DOT have the option to work on both contract and on a full-time basis and are liable for minimum guaranteed earnings irrespective of the deliveries done.”
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