Last-Mile Delivery with Dispatch Network: A Rising Star in AI Logistics
Pune-based last-mile delivery startup Dispatch Network has secured Rs 5 crore during a pre-seed funding round, spearheaded by Antler India. This round also saw contributions from angel investors including Krishi Fagwani, the founder of Thrive, along with Yashin Mahadevia and Parth Modwadhia. The newly acquired funds will be allocated to bolster the company’s artificial intelligence (AI) team, focusing on its own Large Logistics Spatio-Temporal Model (LLSTM), an advanced AI model tailored for intracity logistics and mobility.
Expansion Plans for Dispatch Network
Dispatch Network aims to scale its operations to manage 50,000 orders daily across five cities. The startup, co-founded in 2023 by Rajit Arya and Navneeth Kannan, operates an innovative last-mile delivery network. This network employs AI to enhance order allocation, boost rider productivity, and streamline delivery routes.
Optimising Deliveries with AI
The model developed by Dispatch sequences orders across various platforms, efficiently determining which order a rider should undertake next and identifying the optimal waiting spots for future deliveries. Since its launch in June 2026, the company has reported that its network has successfully processed over 100,000 deliveries. Monthly delivery volumes have seen a substantial rise, jumping from 3,014 in June to 55,000 by October. Currently, Dispatch manages around 3,500 deliveries each day.
Rider Benefits and Performance
Dispatch’s operational model has led to a remarkable reduction of empty kilometres by two-thirds. Additionally, riders associated with the platform are earning approximately 55% more monthly compared to the industry standard. The startup has also achieved a rider retention rate that is 80% higher than the industry average.
Serving Diverse Platforms
The startup caters to food delivery and quick-commerce platforms such as Zomato, Swiggy, Zepto, Instamart, and BigBasket. Furthermore, it collaborates with restaurants and stores through dedicated APIs and engages with the Open Network for Digital Commerce (ONDC).
Future Growth in New Cities
Following its successful launch in Pune, Dispatch Network plans to extend its services to Mumbai in November 2026. Operated by Artem Network Private Limited, the company ventured into the last-mile delivery space in 2026, going live in Pune in June. Rajit Arya has been involved in electric mobility since 2009, whilst Navneeth Kannan brings a decade of expertise in mobility systems as a product architect and engineer.