Loginext Solutions Sells Assets to US Entity for $250K After $50 Million Funding

Loginext Solutions, a logistics software-as-a-service (SaaS) startup supported by Tiger Global and Steadview Capital, has entered liquidation, selling its assets to Delaware-based Stellation Inc for just $250,000. This move marks the end of the road for the once-prominent logistics software provider, which had previously raised $50 million across various funding rounds.

Asset Sale and Liquidation Details

The asset sale encompasses Loginext’s software, hardware, subsidiaries, customer contracts, and vendor agreements. According to a board resolution dated July 8, the company will cease operations under the Loginext brand, transferring all client contracts to Stellation. The resolution indicated that the liquidation proceeds would primarily address the aggregate liquidation preference of the preferred stockholders, with minimal or no distribution anticipated for common stockholders.

Loginext Solutions, headquartered in Mumbai and New Jersey, has returned approximately $8-9 million to its major investors, Tiger Global and Steadview Capital, while setting aside $2 million as working capital. The transition will see all existing contracts transferred to Stellation, ensuring continuity for clients and partners.

Impact of Market Conditions

The sale underscores the challenges facing the SaaS market, particularly in the logistics sector, which experienced a surge during the Covid-19 pandemic but has since faced significant turbulence. Founded in 2014 by Dhruvil Sanghvi and Manisha Raisinghani, Loginext offered solutions to streamline deliveries across various sectors, including retail, ecommerce, and food and beverages. Its clientele included major brands like KFC, Pizza Hut, and Starbucks.

Despite a successful funding round in 2020 led by Tiger Global and Steadview, which valued the company at $100 million, Loginext struggled to maintain its growth trajectory. The company’s difficulties were compounded by high executive turnover and stagnation, with notable departures including co-founder Manisha Raisinghani in 2021.

According to insiders, the decision to liquidate was influenced by the need to offload the company’s liabilities along with its assets. Investors and shareholders favored the sale to minimize losses, despite objections from Raisinghani, who believed a higher sale price could have been achieved.

Loginext’s difficulties reflect broader challenges in the logistics SaaS sector, which has seen increased competition and market volatility post-pandemic. As other players like Fireye and Freight Tiger continue to navigate these challenges, Loginext’s liquidation highlights the complex dynamics within the industry.