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How Celcius Logistics is revolutionizing India’s cold chain infrastructure

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In November 2020, at the peak of the pandemic, Swarup Bose, Rajneesh Raman, and Arbind Jain formed Celcius Logistics, a company with the goal of enhancing cold-chain infrastructure in India. Since its inception, Celcius Logistics has achieved numerous milestones, the most recent being its successful Series A funding round led by IvyCap Ventures, which raised INR 100 crore. Additionally, Celcius Logistics has established a robust clientele, including prominent companies such as Zepto, Zomato, Maersk, Prabhat Dairy, Baskin Robbins, Vadilal, Domino’s, Keventers, and Godrej Agro, among others.

Currently, the company is exploring opportunities to expand its business.

Swarup Bose, Founder and  CEO, Celcius said, “Having raised more funds, we aim to further expand our operations and build a seamless, and truly unbroken cold supply chain, ensuring food security for all.”

The company’s plan is to broaden its current segments, which include hyperlocal deliveries, to also encompass last mile deliveries.

To date, Celcius Logistics has transported more than 125,000 tons of perishable cargo for various sectors such as dairy, fresh agricultural produce, pharma, fruits, seafood, and vaccines, among others, across more than 350 cities throughout India.

Building a thriving cold-chain solution:

Undoubtedly, the cold-chain logistics sector remains a challenging industry to navigate. In India, the system is plagued with several inefficiencies and is responsible for a significant amount of food waste even today.

Celcius Logistics introduced its intelligent last mile delivery platform in August 2022, which aims to tackle the most pressing challenges in India’s delicate cold supply chain. The company has also collaborated with automotive manufacturers and vehicle owners to establish a network of refrigerated vehicles, integrated with its Inventory Management System (IMS).

Celcius Logistics’ IMS is tailored to cater to the unique requirements of the cold supply chain. Similar to a standard inventory management system, it incorporates temperature management, humidity management, and shelf life management features to ensure the safe transportation of perishable goods.

At present, Celcius Logistics’ last mile service has grown to encompass more than 200 partner vehicles across 11 cities, catering to dark stores, retail outlets, D2C (direct to consumer) deliveries, and various sectors, including e-commerce, pharma, frozen commodities, fresh produce, and other perishable industries.

Celcius Logistics launched its latest hyperlocal delivery service in October 2022 with a focus on implementing technology-driven solutions to mitigate the significant wastage of perishables during transit caused by cold chain malpractices and inefficiencies. The service guarantees speed, quality, and agility in the transportation of goods ranging from 500 gms to 50 kg, utilizing both bike riders and larger reefer trucks for more massive volumes.

After testing the service in Kolkata, Celcius Logistics expanded its hyperlocal delivery service to several other cities, including Delhi, Mumbai, Bengaluru, Hyderabad, and Pune, with a team of over 100 riders.

Celcius Logistics has also acquired distribution contracts from cloud kitchen clients, such as Zomato, for its hyperlocal delivery platform.

Building out the vision:

According to the Mumbai-based startup, it has achieved a 20-fold growth rate in the last year alone.

“We are just about touching 100 Cr ARR in the topline and aiming to grow at 3X and achieve the target of 300 Cr ARR by next year,” says Bose, adding that its existing verticals will help it achieve this scale. 

Celcius Logistics’ technology-driven last-mile delivery service emphasizes the consolidation of small reefer vehicles and utilizes the company’s distinctive Vahaan Vikas Yojana to introduce new assets to the sector, providing opportunities for smaller transporters throughout India.

“With the Vahan Vikas Yojana Scheme, we aim to build a reefer trucks network, as part of our larger mission to build an unbroken cold supply chain in the country,” he adds.

Vahaan Vikas Yojana is a corporate program that supports new entrants, including asset owners for transport or warehousing, in entering the cold supply chain sector. This initiative facilitates rapid entry into new markets.

Celcius Logistics has established a robust network to ensure ongoing business for its Vahaan Vikas program, with more than 25 direct annual contracts with companies and over 107 cold storage facilities.

Celcius Logistics has partnered with several major original equipment manufacturers (OEMs) such as Ashok Leyland, Tata Motors, and Mahindra at a national level to provide an assured and exclusive competitive rate over the maximum retail price (MRP), further supporting this initiative.

Celcius Logistics’ Vahan Vikas Samriddhi program financially supports aspiring regional entrepreneurs in the transportation sector.

Vahan Vikas Samriddhi, an extension of Vahan Vikas Yojana, allows businesses to register on the platform and upload their KYC credentials. STFC then assists them with funds, while Celcius streamlines the process of securing RTO-registered vehicles based on their requirements.

The startup has expanded its operations beyond India’s borders to facilitate the import and export of products such as exotic fruits and seafood from countries like Nepal and Afghanistan, which are then distributed to India and vice versa.

“So it’s still at a very nascent stage,” says Bose, adding that this feature is still under progress. 

“Our goal is to work towards a sustainable future, by taking steps to reduce the wastage of perishables through innovative tech solutions and create a meaningful impact on the ecosystem,” Swarup says.

SnackTeam
SnackTeamhttps://snackfax.com
SnackTeam is a specialised group of editorial staff motivated to improve the lives of individuals and society. The team intends to bring the most authentic, well-researched and dependable content for you and your loved ones every day.
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