As part of a business shift, FedEx Supply Chain in Memphis will lay off over 600 employees. On August 27, the logistics colossus with headquarters in Memphis submitted a WARN notification (Worker Adjustment and Retraining Notification).
FedEx informed the agency that 611 workers at its operations at 4155 Quest Way and 5800 Challenge Drive will be let go. The number of affected employees was not revealed at the time of the August 14 Commercial Appeal report on FedEx Supply Chain layoffs.
WARN Notice Confirms FedEx Supply Chain Layoffs
The WARN notice states that FedEx and impacted employees will coordinate services with the rapid response team of the Greater Memphis Workforce Development Board.
FedEx refused to give ‘The Commercial Appeal’ any more information about the WARN notification. According to a prior statement from the firm, the FedEx Supply Chain customer located in Memphis at 4155 Quest Way and 5800 Challenge Drive will be moving a sizable amount of its operations to a new third-party logistics provider in a different location.
The transition is anticipated to be finished by October 2025. FedEx intends to continue operating a part of its operations in Memphis.
Locations and Number of Employees Affected
FedEx acknowledged that workers at this location were informed beforehand, and many of them will be qualified for other positions within the organisation. According to the official statement from the brand, the business is dedicated to helping impacted workers find new employment, relocate, or receive severance pay, if necessary, including at other FedEx locations in the region.
Network 2.0 Restructure and Prior Layoffs
According to FedEx, these modifications have nothing to do with the reorganisations it made as part of its previously declared network transformation strategy, known as Network 2.0. As part of the restructure, FedEx stated in July that it will be laying off over 480 workers.
Quick
Shots
•Layoffs at 4155 Quest Way and 5800
Challenge Drive facilities.
•Transition to a new 3PL provider to
be completed by October 2025.
•FedEx coordinating with Greater
Memphis Workforce Development Board for assistance.
•Impacted staff may get opportunities
for relocation, severance, or other FedEx roles.
•Business shift as FedEx customer
moves operations to another third-party logistics provider.
The deal represents a resurgence of the two companies’ relationship over six years after FedEx declared it would not extend its domestic delivery contracts with Amazon for Ground and Express. FedEx stated at the time that it wished to concentrate on the larger e-commerce industry.
Although e-commerce is still a top client category, the carrier is implementing extensive network modifications to better manage those deliveries.
Serving a client like Amazon, which may provide high volumes but frequently at a less profitable clip, is especially crucial. UPS has complained about its Amazon delivery contract.
In a LinkedIn post, Jay Kent, managing director of SLB Performance, asked whether FedEx had a competitive advantage in network optimisation and could deliver these package types at a lower cost than UPS while still turning a profit.
UPS Ending its Contract with Amazon
The revelation of the arrangement follows UPS’s January declaration that, because to financial concerns, it would reduce its Amazon business by more than 50% by the second half of 2026. But according to Amazon, the FedEx deal isn’t intended to take UPS’s delivery capacity over.
According to a LinkedIn post by LPF Spend Management founder Nate Skiver, the agreement satisfies a requirement for both businesses. Amazon gains support for products that are more difficult to handle, while FedEx sees an increase in volume and revenue.
Skiver went on to say that the US parcel market offers few large-package delivery choices for Amazon, especially for shipments that are greater distances. If UPS won’t accept it, he continued, there’s nowhere else to go.
Amazon’s Strong In-house Logistical Network
According to Amazon, its internal logistics network delivers almost two-thirds of its packages in the United States. However, even with highly automated networks like FedEx and Amazon, handling huge goods effectively can be challenging. Bulkier shipments are usually subject to costs from parcel carriers, and these rates have increased recently.
A media report stated that FedEx had more affordable prices than UPS. Additionally, according to media reports, FedEx will support AMXL, Amazon’s Extra Large delivery network, which handles order fulfilment, delivery, and installation for big, heavy, and bulky products including appliances and furniture.
“The reference to AMXL is premature at this point,” according to Amazon. FedEx terminated its domestic ground delivery agreement with Amazon in 2019 due to what it considered to be challenging service criteria and low yields. According to estimates at the time, FedEx handled 4% of ground traffic for Amazon.
Before the separation, Amazon had shifted a large portion of its business away from FedEx’s now-defunct SmartPost program, where FedEx Ground sent packages to the USPS for final home delivery.
However, FedEx still has a lot of extra capacity in its parcel network that has to be filled, according to John Costanzo, president and CEO of consulting firm LDK Global Logistics.
Because non-standard cargo typically cannot pass via their sorting machinery and must pass through a manual bypass centre, network carriers despise them.
E-commerce has revolutionized the way we shop, with online marketplaces and services becoming an integral part of our daily lives. From ordering groceries to purchasing electronics, the convenience of online shopping has transformed the retail landscape. Behind the scenes, the transportation industry plays a crucial role in ensuring these goods are delivered to our doorsteps in a timely manner.
One prominent name in this industry is FedEx, a global leader in logistics and courier services. In this article, let’s learn about FedEx, including how it started, its business and revenue model, and more.
FedEx is a global courier company that has seen success in recent years due to the growth of online shopping. It is a global provider of transportation, eCommerce, and business services, offering customers an extensive portfolio of services. FedEx operates its own companies, which include FedEx Services and FedEx Freight. The FedEx Services segment consists of the company’s package delivery business and freight forwarding services. The FedEx Freight segment consists of the company’s truckload freight operations and other companies within the holding group.
The company delivers packages to customers’ doorsteps, wherever they are in the world. As online shopping continues to grow, this has meant more and more parcels for FedEx Corp drivers, whom investors have applauded for their cutthroat efficiency. FedEx companies include FedEx Express, which focuses on air delivery services; FedEx Ground, which specializes in ground shipping; and FedEx Freight, a heavy freight service. FedEx’s deep industry expertise and well-established logistics supply chain make it a leader in eCommerce and help it tap into customers’ needs. Its success has been reflected in its stock value and profit forecasts. The company is also one of the biggest rivals of United Parcel Service (UPS).
How to Ship a Package With FedEx
FedEx – Industry
Transportation and eCommerce services have a promising future in the US with the introduction of drone delivery systems. Many brands are now utilizing these services to meet consumer demand, and logistics companies are increasingly turning to channel sales for delivery services. Same-day deliveries are becoming more common as consumers expect quick service from their favorite brands. With enough potential seen in this new technology, tech giants like Amazon are investing heavily in drone delivery systems and seeking ways to reduce shipping fees for consumers.
Logistics companies are already implementing various cloud service providers to facilitate the transportation industry’s digital transformation. The increasing use of automation and analytics in the transportation industry is enabling businesses to optimize their profit streams while providing better customer service. In addition, party logistics, warehousing, and supply chain have been revolutionized by tech startups that are providing efficient solutions for the transportation industry. This has enabled commerce supply chains to become more seamless, cost-effective, and secure for both consumers and businesses alike.
As commerce fulfillment services continue to develop, they will open up new career opportunities and allow entrepreneurs and business owners alike to establish operations that are more efficient than ever before. Furthermore, there is potential for greater innovation in supply lines that could benefit both producers and consumers by providing better access to goods at a lower cost.
The market for worldwide eCommerce logistics, which was estimated to be worth USD 315.82 billion in 2022, is projected to grow at a CAGR of 22.3% from 2023 to 2030.
The foundation of the company dates back to Little Rock, Arkansas in 1971. It was founded by Frederick W. Smith.
Frederick W. Smith
Frederick W. Smith – Founder and Executive Chairman, FedEx
Frederick W. Smith is the founder and Executive Chairman of FedEx, a renowned logistics and courier company. Born in 1944, Smith hails from Memphis, Tennessee, and holds a Bachelor’s degree in Economics from Yale University. He served in the U.S. Marine Corps for three years. After that, with his visionary leadership and entrepreneurial spirit, Smith established FedEx in 1971, revolutionizing the transportation industry and pioneering the concept of overnight express delivery. Smith stepped down from the position of CEO in June 2022, to become the Executive Chairman and was replaced by Raj Subramaniam.
Raj Subramaniam
Raj Subramaniam – President and CEO, FedEx
Raj Subramaniam is currently serving as the President and Chief Executive Officer of FedEx Corporation. With a wealth of experience in the logistics sector, Subramaniam has been instrumental in driving FedEx’s global strategies and operations. He holds a Bachelor’s degree in Chemical Engineering from the Indian Institute of Technology (IIT) and a Master’s degree in Chemical Engineering from Syracuse University. Subramaniam’s expertise and contributions have been vital to FedEx’s continued success as a leading player in the logistics and e-commerce space.
FedEx – Startup Story
The company was founded in Little Rock, Arkansas, in 1971 as Federal Express Corporation. FedEx’s startup story began in 1971 when Smith conceptualized the idea of an urgent delivery system in a term paper. Despite initial doubts, Smith founded Federal Express Corporation in Little Rock, Arkansas, and began formal operations in 1973 after moving to Memphis, Tennessee. With a focus on providing reliable and efficient delivery services, FedEx quickly gained momentum, reaching a billion dollars in revenues by 1983. The company expanded globally, acquiring major competitors like Flying Tiger Line in 1988 and officially adopting the nickname “FedEx” in 1994 for marketing purposes.
FedEx is a leading provider of express shipping services within the express shipping industry. It is a major player in the parcel service and package delivery markets. In the industry, FedEx has set the standard and is now a direct competitor of the global leader, United Parcel Service (UPS). By becoming a global leader in express shipping, FedEx has set a new standard for the entire industry and created an ever-evolving marketplace for its customers.
Today, FedEx is recognized as a global leader in logistics and courier services, with a remarkable journey that showcases the power of innovation and perseverance.
FedEx – Mission and Vision
The mission statement of the company reads as follows: “FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation, and related business services through focused operating companies.” The reputation of the company has been growing at a notable rate for the past few decades, so the company must keep up its value-based services.
The vision is to be a dynamic and progressive courier service firm that leverages technology and impacts the lives of all people.
FedEx – Name, Tagline, and Logo
FedEx Logo
FedEx was first named Federal Express Corporation, and this name continued till 1997. Later, the company was called FDX Corporation until 2000 and now it’s called FedEx. Still, the trade name of the company is FDX.
FedEx logo seems tricky with its optical illusion. There goes a little white arrow between E and X, which depicts the speed, accuracy, and perfection of its services.
The tagline of FedEx is “Where now meets next.”
The slogans of the company are quite fascinating, like ‘Relax, it’s FedEx’, ‘The World On Time’, ‘We Understand, ‘We Live To Deliver’, and ‘Where Now Meets Next.” This feels like an energy-driving force, and so does the company.
FedEx’s business model and revenue model encapsulate FedEx’s capability to allow customers to ship goods worldwide. The business model of FedEx is based on four segments which are: Express segment, Ground segment, Freight segment, and Services.
The Express Segment provides customers with the largest express transportation network in the world with access to more than 220 countries and territories. It also provides international shipping services, retail access, and other value-added services. The Ground Segment provides customers with cost-effective delivery options for shipments within the United States. The company’s business model is based on providing package delivery, freight services, and supply chain solutions to commercial trade across the globe.
FedEx – Revenue Model
FedEx generates revenue from its Express business, which includes domestic and international package delivery services. The company’s revenue model is based on three main services: transportation, eCommerce, and business solutions. FedEx also has subsidiaries such as FedEx Logistics and FedEx Trade Networks, which provide additional services such as global supply chains, customs brokerage, and freight forwarding. FedEx collaborates with other businesses to provide delivery services in other countries, and its recognized brand and worldwide hubs in over 220 countries and territories make it a leader in package delivery and business services.
FedEx – Employees
FedEx provides great deals to their employees for traveling. It also offers other common benefits like insurance policies and soft skill training. FedEx also allows its employees to pursue their education through the education assistance scheme.
FedEx – Challenges Faced
The complaints regarding the delay in the shipment process due to the pandemic, natural calamities, or any other natural reasons are a challenge that the company has faced.
FedEx – Acquisitions
FedEx Corporation, one of the first major shipping companies, has made a new acquisition of FedEx Express. This acquisition will enable the company to offer overnight delivery services and international freight shipping. In addition, it will expand its package delivery and air delivery services for customers. FedEx Logistics (formerly FedEx Trade Networks), a subsidiary of FedEx Corporation, is now an integral part of the company’s air network. It offers logistics solutions for international trade networks and customs brokers that are tailored to their customers’ needs.
In 2020, FedEx acquired Tiger International and Flying Tiger, two international parcel delivery companies. This acquisition allowed it to expand its international delivery capabilities. FedEx also acquired P2P Mailing, a logistics company that provides last-mile delivery options for customers. Additionally, the acquisition of an eCommerce company and retailer will provide customers with more options for delivery. Finally, through the acquisition of Tiger International and Flying Tiger, FedEx will be able to better serve consumers with air cargo airline services.
FedEx – Growth
The FedEx Corporation is a global transportation services company with multiple subsidiaries, such as FedEx Supply Chain, FedEx Office, and FedEx Ground. It is the main competitor of UPS and its stated purpose is to drive growth by expanding its retail outlet network. The company acquired Rapidao Cometa in Brazil to strengthen its presence in the country’s express delivery market. The company also plans to expand its FedEx Freight business in Europe and Asia-Pacific regions.
The acquisition of Gencos and Supaswift will help expand FedEx’s portfolio and Gencos’ expertise in supply chain services, while the move to acquire P2P’s capabilities will complement the company’s existing service offerings. In addition, the company’s strategy to represent Supaswift in Africa is a major step forward in its efforts to expand its African network.
FedEx – Competitors
The growing demand for supply chain services in the retail eCommerce sector has driven FedEx to invest heavily in automation, increased digitization, and options for warehouse automation. These measures have allowed FedEx to remain competitive with competitors like UPS and Amazon. The main competitors for FedEx also include DHL Supply Chain, APL Logistics, Agility Logistics, and Hub Group.
FedEx has been recognized as one of Fortune Magazine’s 100 best companies to work for in 2020. It also won the best work-life balance award in 2019. FedEx has the best rankings for CEOs and satisfied employee ratings.
FAQs
What does FedEx do?
FedEx is a global courier company that has seen great success in recent years due to the growth of online shopping. It is a global provider of transportation, eCommerce, and business services, offering customers an extensive portfolio of services.
When was FedEx founded?
The foundation of the company dates back to Little Rock, Arkansas, in 1971.
Who is the founder of FedEx Corporation?
Frederick W. Smith is the founder of FedEx Corporation.
Who is the CEO of FedEx Corporation?
Raj Subramaniam is currently serving as the President and CEO of FedEx Corporation.
FedEx Corporation previously called Federal Express Corporation or FDX corporation is an America-based multinational company mainly focusing on transportation and e-commerce services. It was founded in the year 1971 by Frederick W. Smith.
FedEx Express provides transcontinental and international express services to hundreds of locations and markets across Europe, the Middle East, the Indian Subcontinent, and Africa (EMEA). FedEx Express EMEA is headquartered in Paris-Charles de Gaulle and is gradually expanding its network across the region through smart, strategic investments.
FedEx has the service you require, whether it’s express or less urgent, little shipments or heavyweight, import or export. FedEx Express created express delivery and continues to be the industry leader, providing fast, dependable, and time-definite delivery to more than 220 countries and territories.
The Memphis-based firm was supposed to announce its fourth-quarter earnings on June 23. However, due to “shelter in place” rules for the coronavirus pandemic, the corporation postponed the publication until after the market closure on June 30. Due to the pandemic, FedEx has implemented many measures, including a cost for large shippers and a daily limit on how much specific shops can deliver. FedEx similarly lowered its economic outlook in March due to the coronavirus pandemic’s uncertainty.
FedEx is a well-known courier company having its roots fixed to more than one service. There are many interesting facts revolving around FedEx all belonging to a different origin. Some of them have been shared below.
1. FedEx Was Not Started as a Specified Courier Service
FedEx did not start out as a courier service as it does now. FedEx was founded on the idea of picking up cheques from the 12 Federal Reserve banks in the United States, flying them to a central hub, and then delivering the cheques to the federal reserve member banks the next day, according to creator Fred Smith’s business plan from 1971.
He pitched the proposal to the Federal Reserve, which was enthusiastically received. Smith used his personal resources and a loan from his family trust fund to purchase two Dassault Falcon jets from Pan-Am. The federal reserve board later reversed its decision, leaving the company with no clients, two Falcons, and $3.6 million in debt.
2. FedEx Earned Its Investment by Gambling
FedEx was on the edge of bankruptcy in 1974, just three years after it was founded. Fred Smith was unable to raise funds, obtain loans, or attract investors because the company was losing $1 million each month. Only $5,000 remained in the company accounts at the conclusion of the working week, on Friday, which was insufficient for the company to continue operating.
Smith made the decision to take severe measures. He travelled to Las Vegas from the business’s headquarters in Little Rock, Arkansas, and spent the weekend gambling with company monies.
On Monday, Smith went to the company’s Little Rock headquarters and informed surprised bosses that he had turned the $5,000 into $27,000. FedEx received $11 million in the capital soon after, and two years later, in 1976, it made its first-ever profit of $3.6 million.
3. The Secretive Logo Design
The black arrow in the image stands for the indication of deliveries made by FedEx from point A to point B
Examine the letters E and X closely. In the white space between the two characters, there should be an arrow. The arrow is meant to send a concealed message about FedEx. The arrow defines the work of FedEx, which is to deliver from point A to Point B.
Another shocking fact is that the arrow was not designed purposely. Instead, it was found accidentally in the year 1994, while designing 400 different logos for the corporation.
Tracking numbers now forms the basic part of each courier company. However, FedEx is debatingly acknowledged as the inventor of tracking numbers. It is estimated that FedEx invented the tracking number in the late 1970s. Tracking numbers were invented as the set of numbers that represent a package’s trip and were meant for FedEx’s internal quality control system.
As a matter of fact, FedEx issues more than a million tracking numbers daily and receives around 125 million tracking inquiries every day.
5. FedEx Stands for More Than Shipping and Courier Service
Undoubtedly, FedEx is highly acknowledged for its courier shipping facility. However, it is not restricted to the shipping service only. It also provides multiple e-commerce services and custom brokerage services under the Logistic brand of FedEx. FedEx is also known to have its role in electronic repairs and 3D printing.
6. The Movie “Cast Away” Is Inspired by FedEx Principles
FedEx is truly appreciated for its on-time deliveries. The concept of the movie “Cast Away” is highly inspired by FedEx and created a great marketing strategy for FedEx with zero fees.
The main character of the movie Chuck Noland is shown as the system analyst of FedEx who gets stranded on an island after a plane crash due to a storm. He managed to survive four years on the island and successfully makes an exit from the island with one unopened and un-delivered courier in his hand.
FedEx in Chuck Noland
After the exit, Chunk finally delivers the unopened letter successfully to the given address and showcases the late but successful delivery of the firm FedEx.
7. FedEx Owns 697 Aircraft for Smooth Work
FedEx Aircraft
In the year 1973, FedEx first delivered with the help of aircraft. On 17th April, 14 small aircraft flew from Memphis and delivered to 25 different US cities. From there on, FedEx is known to deliver with the help of aircraft whenever required.
As a matter of fact, FedEx serves 220 countries across the globe and has 697 aircraft with more than 650 airports served.
8. FedEx Does Not Ship Everything
Irrespective of the belief that FedEx can transport anything through its courier service. It is not the truth. FedEx also has its own terms and condition which does not allow the shipping service for a few products.
Any kind of animal is not transported by FedEx. Some exceptions can be made to this for specific fishes and reptiles. FedEx also does not support shipping illegal things through its service.
As a matter of fact, FedEx handles over 19 million packages every day but with its restriction still in terms.
Conclusion
FedEx Express is the world’s largest express transportation provider, providing fast and reliable services for more than 3.6 million items each business day, thanks to unmatched air route authorities and transportation infrastructure, and cutting-edge information technologies. Just like other corporations, FedEx corporation also has its share of fun facts. Some of them are shared in the above context.
FAQs
What makes FedEx unique?
FedEx was not the first shipping company to be developed. However, with the time FedEx made its place on the market and created its own name for its timely and reliable services. The service given by FedEx is still up to the mark, and that is what made FedEx unique from others.
What does FedEx mean?
FedEx stands for the term Federal Express. After the introduction of the FedEx logo in 1994, the term Federal Express was then replaced with FedEx after a brief customer observation of its name-calling.
How many planes does FedEx have?
FedEx is claimed to have approximately 697 aircraft with its service extended to 650 airports across the globe.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Blowhorn.
Logistics has been a challenge for this country ever since, especially when it comes to the first mile, middle mile, and last-mile logistics. To bridge this gap with an innovation, Mithun Srivatsa and Nikhil Shivaprasad founded Blowhorn in 2014. In this article, know about Blowhorn’s Journey & how it is growing its revenue 500% since Series A funding!
Blowhorn is a tech-enabled intra-city logistics company that offers mini-trucks to transport goods across multiple cities of India. Blowhorn is offering a broad suite of services from the first mile, middle mile, and last-mile logistics for businesses and individuals that brings together a robust network of mini-truck owners and consumers. Also, this platform is handling goods from 1g to 1T.
Blowhorn is a venture that works on the following module. Blowhorn provides a full-stack logistics service from an asset-light model via its tech-based platform. This platform connects the logistics service seekers with mini-truck drivers through its website and mobile app. It is intriguing to know loading and unloading of goods is a part of the service that Blowhorn provides.
This platform’s algorithm works very similar to that of cab aggregators in the country like Uber and Ola. So ideally when a consumer requests a truck on this platform, the request is processed to match an existing mini-truck, and then consequently the vehicle driver is connected with the consumer. The time frame of this transaction can be as little as thirty minutes and could also go on to be scheduled for a later date and time.
The unique selling proposition of Blowhorn is providing ‘full-stack logistics’ solutions to the vast user base in the country. Full-stack in this context refers to its excellent capabilities in all the three elements of the logistics value chain: warehouses, transportation, and tech-enabled systems.
Blowhorn with its tech-based portal claims to have built new layers along with the transportation stack that drives margin expansion. Also, Blowhorn offers a very important feature to its users namely real-time tracking of goods.
Blowhorn started with an experience of one of the co-founder’s life. Mithun Srivatsa’s colleagues in Bengaluru were trying to move their bed and a few other home-related things to a different apartment in the same city and yet it became quite an exhausting process. His friends struggled the entire day going back and forth just to move a few goods from one place to another. Not just that, his friends had to take days off from work to do this which ideally should’ve taken just a few hours.
Amongst this chaos, the key challenges his colleagues faced was mainly finding a truck driver to transport the goods, being able to communicate with the truck driver because none of his colleagues knew Kannada, and cross-checking the truck driver’s credentials because trust becomes a major factor while transporting valuable things.
“I knew for a fact that the problem was certainly not the lack of supply of truck drivers,” says Srivatsa.
Hence he started thinking of creating a common platform to solve this problem by aggregating and organizing the otherwise fragmented market of mini trucks. And that is exactly what he did. And one of the biggest insights that ran through his mind during this was that if an aggregator model could work for transporting people through cabs and autos then it could work very well for transporting goods.
Blowhorn – Founders and Team
The founders of Blowhorn are Mithun Srivatsa and Nikhil Shivaprasad.
Mithun Srivatsa and Nikhil Shivaprasad – Blowhorn founders
Both these co-founders, Nikhil and Mithun studied together in college and have known each other for a long time, since 2001. When Mithun was pitching the idea of his newborn venture – Blowhorn to investors in the states, Mithun reconnected with Nikhil. Following that Nikhil took charge of building Blowhorn’s technology platform.
Mithun Srivatsa – Mithun has studied business management from Cambridge Judge Business School.
Nikhil Shivaprasad – Nikhil has a degree in MS in Electrical Engineering from North Carolina State University.
“I am a logistician, while Nikhil is a generalist technologist and we were good bringing together our capabilities in a market, which we think has a lot of potentials,” said Mithun.
After the basic idea for Blowhorn was germinated, Mithun went around for analysis regarding the size of the intra-city goods transport market in the country. That’s when Mithun found out that the market was huge and also relatively untapped. And then to make the most of it, Mithun along with his batchmate, Nikhil Shivaprasad, launched their startup under the name of Blowhorn in August 2014.
And since then, Blowhorn operates on a logistics marketplace focused on the intra-city movement of goods. Initially, the company started with a focus on retail customers and since then has expanded to cater to corporate clients as well.
“The volume of business and margins in the ‘individual’ segment weren’t sufficient to sustain our business. So, we shifted our focus to enterprise customers—both traditional and modern businesses, to provide them with efficient and reliable logistics services,” says the co-founder and CEO of Blowhorn – Srivatsa.
The biggest milestone for this Bengaluru headquartered startup Blowhorn was getting through the bureaucratic paperwork and bringing truck drivers on board.
“The biggest challenge we initially faced was the red tape in getting our company registered and opening a current bank account. Also, truckers were reluctant to trust a startup whose founders were working out of coffee shops,” says Srivatsa.
While the co-founder’s duo couldn’t do anything much about the red tape, acquiring a Regus membership helped them get trucker drivers on their robust platform. This Regus membership cost them about INR 2,000 a month provided them with access to the common area of Regus properties. And that’s how vehicle owners and drivers assumed that the co-founders had a great office at Regus and then became open to the idea of doing business with them.
Blowhorn’s top competitors are BlackBuck, Shiprocket, RailYatri, LalaMove, LetsTransport and Porter. It also faces competition from the bigger players in the market namely DTH, FedEx, Gati to name a few.
Blowhorn – Funding and Investors
To date, Blowhorn has raised a total of $8.8M in funding over 5 rounds.
Its recent funding came on May 2020 as Debt Financing led by Trifecta Capital Advisors for an Undisclosed amount.
Date
Stage
Amount
Investors
November 2014
Seed Round
–
Unitus Seed Fund, Tim Draper
March 2017
Series A
$3.8 Million
Draper Associates, IDG Ventures India, Chiratae Ventures, Michael & Susan Dell Foundation
January 2019
Venture Round
–
InnoVen Capital
June 2019
Debt Financing
$5 Million
–
May 2020
Debt Financing
–
Trifecta Capital Advisors
Blowhorn is funded by investors Trifecta Capital Advisors, Chiratae Ventures, Dell Foundation, Venture Catalysts, James Lee Sorenson and Japanese VC firm, Dream Incubator, InnoVen Capital, Unitus Ventures, and Draper Associates.
Srivatsa recently said, “Now, with a strong core team in place, we are expanding rapidly and are seeing significant growth in our recently launched verticals. Our goal is to be active across more than 100 cities across India by 2021, and we are on track to achieving that. We are also in the final stages of executing our first international foray, and we are very excited about it. Our margin profile remains healthy and has grown 30% over the last quarter.”
Blowhorn – FAQs
Who are the Founders of Blowhorn?
The founders of Blowhorn are Mithun Srivatsa and Nikhil Shivaprasad.
How much Funding has Blowhorn raised?
Blowhorn has raised a total of $8.8M in funding over 5 rounds. Its recent funding came on May 2020 as Debt Financing led by Trifecta Capital Advisors for an Undisclosed amount.
What is the USP of Blowhorn?
Full-stack logisticssolutions to the vast user base in the country. (warehouses, transportation, and tech-enabled systems)
Real-time tracking of goods
Who are the Competitors of Blowhorn?
Blowhorn’s top competitors are BlackBuck, Shiprocket, RailYatri, LalaMove, LetsTransport and Porter. It also faces competition from the bigger players in the market namely DTH, FedEx, Gati to name a few.
