Pando funding: Supply chain software startup Pando raises $30 million funding led by Iron Pillar

San Jose-and Chennai-headquartered supply chain software startup Pando Wednesday said it has raised $30 million in new funding led by venture growth investor Iron Pillar. Another new investor Uncorrelated Ventures, a San Francisco-based early stage fund, also joined the financing round. Existing backers including Nexus Venture Partners, Chiratae Ventures and Next47, participated in the fundraise.The fresh capital raised takes the total funding at the company to $45 million. The funds will be used to drive growth across geographies and industries, the company said in a prepared statement. About 50% of the company’s revenues are generated from the North American market, while 30% come from Asia Pacific and nearly 20% from the Middle East.

With an annual recurring revenue of $5 million and an average contract value of about $350,000 annually, 2018-founded Pando services clients in industries of consumer packaged goods, industrial manufacturing, chemicals and pharmaceuticals and bulk commodities, Nitin Jayakrishnan, Pando CEO told ETtech in an interaction. These include Johnson & Johnson, Nestle, Nivea, Accuride, Danaher, Perfetti Van Melle, and BP Castrol.

“We have always been focused on profitable growth. We’re at 80% gross margins. Until about a year and a half, we were at a 1:1 burn ratio. But in the last year and a half, the burn ratio suddenly expanded to 1:3. In the last six months, we’ve now brought it back under control to honest 1:1.5. We will go back to 1:1 this year,” Jayakrishnan added.

Over 70% of manufacturing executives reported that their companies have been impacted by supply chain disruptions in the past year, with 90% of those companies experiencing increased costs and declining productivity, Pando said, citing a Deloitte survey from September 2022, to make its case for digitising the logistics market.

“When I met the Pando team and actually looked carefully at their product, what was really remarkable and this says a lot about Indian SaaS entrepreneurs in general and not just Pando, is really without having a single sales resource here in the US, the company was able to close Fortune 500 accounts sitting out of Chennai,” Mohanjit Jolly, partner at Iron Pillar told ETtech in a separate interaction.

Last month, Iron Pillar, which has backed the likes of FreshToHome, Uniphore, Servify and Curefoods, closed a $129 million fund that will be focussed on making investments in global cloud software companies from India.

Pando launched Fulfillment Cloud, which acts as a unified platform to streamline the end-to-end order-to-fulfilment process of manufacturers, distributors, retailers, and third-party logistic providers.

“Pando’s Fulfillment Cloud has been proven across several industries in the last few years, with strong revenue growth, marquee customer logos, high CSATs, and a fully built-out enterprise-grade platform. Pando is now expanding into new industries and geographies, especially the US,” Abhishek Sharma, managing director at Nexus Venture Partners, said. Sharma seeded the company in 2018.

The company raised its Series A round of funding in 2022. Since then, its revenue has grown eight-fold, and customer base five-fold, John Zimmerman, chief revenue officer, North America and Europe regions at Pando said.

Zimmerman – previously vice president of enterprise customer account sales at cloud-based business spend management platform Coupa Software – joined Pando in July 2022, to lead the company’s go-to-market motion in the US.

Pando was founded by Jayakrishnan and chief technology officer Abhijeet Manohar. A graduate of RV College Of Engineering in Bengaluru and Arizona State University, Manohar worked as principal engineer of Systems Architecture at SanDisk prior to founding Pando.

Jayakrishnan, a graduate from University of Warwick, NYU Stern School of Business and Singapore Management University, had previously founded iDelivery Tech Solutions to solve for digitisation of the trucking market of fleet operators. He is also a co-chairperson of the National Logistics Committee at the Internet and Mobile Association of India (IAMAI).

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