Bertelsmann Next, the investment platform of German media giant Bertelsmann, has officially entered the Indian market with the acquisition of an 80% stake in Let's Transport, a logistics platform. The move signifies Bertelsmann's strategic focus on expanding its global footprint and capitalizing on the burgeoning logistics sector in India.
Let's Transport, founded in 2015, is a technology-enabled platform that connects businesses with independent truck drivers and small freight forwarders, providing scalable and cost-effective transportation solutions across India. The platform boasts over 200,000 registered truckers and serves more than 200 corporate clients across over 25 cities. Its asset-light model and use of data analytics and algorithms ensure efficient and reliable delivery services, with a reported service level agreement (SLA) adherence rate of over 97%.
Bertelsmann's interest in Let's Transport dates back to 2017, with Bertelsmann India Investments (BII) holding a stake in the company since then. In 2023, BII invested an additional $20 million in Let's Transport, becoming the largest investor in a $25 million financing round. This continued investment underscores Bertelsmann's confidence in Let's Transport's potential and its strategic importance in the Indian logistics landscape.
The acquisition aligns with Bertelsmann Next's strategy of consolidating logistics operations through multiple acquisitions, with a focus on long-term growth. Bertelsmann aims to leverage Let's Transport's established network and technological capabilities to further penetrate the Indian market and offer comprehensive logistics solutions.
"We believe that Lets Transport is on its way to becoming a leader in the Indian logistics landscape and in future, will be a key enabler for adoption of EVs in the country" said Rohit Sood, a Partner at Bertelsmann India Investments.
LetsTransport has been utilizing previous funding rounds to expand its market presence, scale its business verticals, and accelerate its path to profitability. The company has also been investing in products for both enterprises and truckers, as well as expanding geographically to different areas in India.
The Indian logistics market presents a significant opportunity, driven by increasing infrastructure development, policy changes such as GST, and the growing demand for efficient and reliable transportation services. Bertelsmann's investment in Let's Transport positions it to capitalize on these trends and establish a strong foothold in this rapidly expanding market. Lets Transport aims to enhance logistics competitiveness and achieve financial milestones by 2025.