With a fresh investment, Paperfly and Ecom Express will work closely to digitize Bangladesh’s logistics industry through intelligence-driven automation and data sciences, accelerating the implementation of advanced supply chain and logistics processes and adopting agile solutions in delivery, warehouse and fulfillment management.
Ecom Express, the leading tech based e-commerce logistics solutions provider in India, has invested in the company for the second time, taking the total investments to Tk202 crore.
The Indian based end-to-end technology-enabled logistics solutions provider that has a presence in all 29 states of the country and operates in more than 2,650 cities and towns, ventured into the Bangladesh market injecting Tk100 crore into Paperfly last year.
Another fresh Tk102 crore has been injected into Paperfly to build a digital ecosystem where customers can use the service to deliver products to individuals after being picked up from their doorstep.
Founded in 2016 by Shahriar Hasan, Razibul Islam, Rahath Ahmed, and Shamsuddin Ahmed, Paperfly is the first homegrown tech-enabled logistics company in Bangladesh that offers nationwide coverage.
According to Paperfly, the coronavirus pandemic has been brutal for businesses for the most part. But for a few like Paperfly, a five year old logistic-tech start-up, the public health crisis provided them with the right setting to scale up their business and blossom.
Initially, Paperfly's priority was to make e-commerce deliveries as it introduced countrywide doorstep delivery and pickup, the fastest mid-mile network, app integration, and cashless pay at the doorsteps.
However, last year, the company launched its first contract B2B (business to business), door-to-door express delivery services, targeting the local courier and parcel industry.
It offers doorstep delivery, warehousing, fulfilment, smart return management and cash collection facilities for its online merchants.
Currently, Paperfly employs more than 2,000 people and provides service through its 200 delivery points across the country.
It plans to increase delivery points to 350 and to generate employment for 2,500 people.
Bangladesh’s logistics market remains untapped as the demand for the service has only started to grow on the back of the robust growth of e-commerce and f-commerce.
There are more than 100 courier service companies in Bangladesh and the courier market currently stands at around Tk1,200 crore.
“There is no digitization in the traditional courier and parcel industry if you look at the current traditional players. More customer convenience and delight can be provided in this category if Paperfly comes with digital courier products and services,” Rahath Ahmed, co-founder and chief marketing officer at Paperfly told Dhaka Tribune.
Furthermore, Paperfly can establish compliance benchmarks that will confirm government revenue from the sector since the entire business will be run via technology, Rahath added.
According to TA Krishnan, CEO and co-founder of Ecom Express, the investment reinforces their confidence in the Bangladesh market and will enable the company to be future-ready in managing the scale.
“We look forward to being part of Paperfly’s growth journey," he said.
Local start-ups have attracted more than $21 million from external investors so far this year, according to data from consultancy firm LightCastle Partners.
