Allcargo to launch start-up accelerator to tap into innovations in logistics

Logistics solution provider Allcargo Group will launch a start-up accelerator to identify innovations in logistics industry and find solutions for its problem statements, a top company official said. 

“Allcargo is the only company in India with end-to-end serviceability across the logistics value chain, so any start-up that comes up in this industry is either in the core or adjacent to what we do. Our goal is to be industry leader by far and in order to do that, we have to foster innovation,” said Vaishnav Shetty, Chief Digital Officer at Allcargo Logistics. 

The Mumbai-based company plans to evaluate 4-5 start-ups for each problem statement and select one for each to onboard 6-8 start-ups in the first cohort.  

“What we have identified for the year is about 6-8 problem statements. For each of them we will hold a demo day and then we will run a Proof of Concept (PoC), and based on the success, we will bring them in for a six-month accelerator program,” he said. 

Allcargo will also offer financial assistance to select start-ups. Companies in the seed to Series B stages will be considered for the accelerator. 

Early this year, the company had appointed Mahindra Group's former executive board member V S Parthasarathy as its vice-chairman. He created the start-up accelerator arm at Mahindra, and is an advisor to many start-ups. 

Vaishnav Shetty, son of Allcargo Group’s founder and Chairman Shashi Kiran Shetty, said the company has allocated a pool of capital internally for start-up investing. 

He said the company has a focused, profit and loss (P&L)-based approach to digital transformation based on four key strategic levers such as artificial intelligence/machine learning (AI/ML), automation, customer platforms and start-ups.

“For the last year and half, we have executed many projects to drive productivity and cost, build customized products and create customer stickiness. We have created bottom line impact. Whatever we have made from digital (cost benefits from digital transformation), we are reinvesting in to our start-up initiatives,” Shetty said. 

Talking to BT on the sidelines of an event at the company’s logistics park in the outskirts of Bangalore, Shashi Kiran Shetty said the specially created digital arm is trying to get the company to be digitally first and digitally ready globally. “We have built a tech platform for customer acquisition and management of supply chain business digitally. We are trying to become a digitally first organisation. As a result, today 60 per cent of our business globally comes online already,” he added.  

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