Pickingo Forced to Shut Down Due to Lack of Capital
Bengaluru, INDIA | Red Newswire | Fri, Nov 06 2015. 03:27 PM IST.
Pickingo Logixpress Pvt. Ltd had been providing hyperlocal logistics since a year and now had to shut down because of lack of funds. The closing down of Pickingo has sent another stress signal down the sector which has seen rise and fall of 20 new startups.
Angel investor Zishaan Hayath and Orios Venture Partners had invested $1.3 million in Pickingo this August. Picking used to provide hyperlocal deliveries for pharmacies, groceries and restaurants. It also offered reverse delivery services for e-com companies.
According to sources, Pickingo’s rival Shadowfax Technologies Pvt. Ltd is expected to take over the reverse delivery business of the company. Both Shadowfax and Pickingo are based in Gurgaon. Grab a Grub Services Pvt. Ltd, another B2B delivery startup will be taking over Pickingo’s hyperlocal delivery operations for Mumbai and Bengaluru.
Grab and Shadowfax is also considering adding the existing team workers into the new operations. However, the news has been denied by the Pickingo and Shadowfax co-founders – Piyush Sharma and Abhishek Bansal.
Pickingo was established by Piyush Sharma, Rahul Gill, Siddharth Maheshwari and Rishav Papneja in 2014. According to the reports, two of the co-founders will be absorbed into Orios’ different ventures. Rahul Gill is expected to join Ziffi’s management team. A source said, “Shadowfax will keep the reverse logistics piece alive. That is the only part of the business that is profitable. The formalities will be completed in the next five to six days.”
Pickingo ran into trouble after a possible funding with SAIF Partners failed. The company tried to raise $1 million fund with Zomato but that also fell. As a result Pickingo had to shut down its operations in Mumbai and Bengaluru.
There are 20 B2B logistics startup and none of them, save Shadowfax and Roadrunnr, have been able to raise significant funds. Last month also we saw shut down of SpoonJoy and Dazo (food ordering apps).