Pune-based last-mile delivery startup Dispatch Network has raised ₹5 crore in a pre-seed funding round led by Antler India to expand its artificial intelligence capabilities and develop technology aimed at improving delivery allocation and rider efficiency.
The funding round also saw participation from angel investors Krishi Fagwani, Founder of Thrive, Yashin Mahadevia and Parth Modwadhia. This marks the company's first publicly announced funding round.
Founded by Rajit Arya and Navneeth Kannan, Dispatch Network operates an AI-powered delivery network that coordinates orders across multiple platforms. The startup plans to use the fresh capital to expand its AI team and further develop its Large Logistics Spatio-Temporal Model (LLSTM).
The model is designed to analyse delivery demand, rider availability and movement patterns to determine which orders should be assigned to riders and where they should position themselves for subsequent deliveries.
Unlike conventional delivery systems that rely on individual order selection, Dispatch uses AI to sequence deliveries across platforms, with the objective of reducing the distance riders travel without carrying an order.
According to the company, delivery riders can spend up to 50 per cent of their kilometres travelling without an active order, affecting operating costs and potential earnings.
“Riders need more orders, but more importantly, they need the right next order. Every idle minute we remove goes back into a rider's earnings, and that's how we win supply,” said Rajit Arya, Co-Founder and CEO, Dispatch Network.
The startup claims that riders using its network earn approximately 55 per cent more per month than the industry average. It also reports two-thirds fewer empty kilometres and 80 per cent better rider retention compared with industry benchmarks.
These figures are company-reported and have not been independently verified.
Dispatch began operations in Pune in June 2026 and has since completed more than 100,000 deliveries. Its monthly delivery volume increased from 3,014 in June to 55,000 in October, according to the company.
The startup currently processes approximately 3,500 deliveries daily and works with platforms including Zomato, Swiggy, Zepto, Instamart and BigBasket. It also serves restaurants and stores through direct API integrations and the Open Network for Digital Commerce (ONDC).
Navneeth Kannan, Co-Founder and Head of Product and AI, said the company is developing a decision-making system specifically for last-mile logistics, covering order allocation, rider selection and subsequent positioning.
Dispatch plans to expand operations to Mumbai in November, with a longer-term target of processing 50,000 orders daily across five cities.
Nitin Sharma, Partner at Antler India, said the investment was based on the founders' approach to improving delivery operations from the rider's perspective.
The funding comes as food delivery and quick-commerce platforms continue to examine ways to improve delivery efficiency, rider utilisation and operating costs through technology.
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