Dispatch Network Raises Rs 5 Crore Pre-Seed Round Led by Antler India to Build LLSTM AI Model

Dispatch Network, a Pune-based last-mile delivery startup, has raised Rs 5 crore in a pre-seed funding round led by Antler India, with participation from angel investors Krishi Fagwani, founder of Thrive, Yashin Mahadevia and Parth Modwadhia. Bwdisrupt reported that the company will use the funds to develop its proprietary artificial intelligence model, LLSTM, and improve delivery rider productivity and earnings. The round marks Dispatch's first public funding announcement.

Dispatch Network's LLSTM Model and Rider Earnings

Dispatch is developing a foundation AI model for intracity logistics and mobility. The model, called the Large Logistics Spatio-Temporal Model, determines which order a rider should accept next and where they should wait for a subsequent order, sequencing work across platforms rather than responding to individual orders in isolation. Dispatch said its system selects orders for riders instead of leaving the decision entirely to them, which it says improves order sequencing and reduces empty kilometres.

The company estimates that riders can cover up to 50 per cent of their kilometres without an order, while bearing the cost of these trips themselves. Dispatch said its model has helped reduce empty kilometres by two-thirds, while riders take home around 55 per cent more each month compared with the industry average. Rider retention is 80 per cent higher than the industry average, according to the company.

Cofounder and CEO Rajit Arya said the company is working to address structural inefficiencies in the last-mile delivery ecosystem, where platforms face rider shortages even as delivery partners spend substantial time travelling without orders. "If we can improve the productivity of every rider hour, we can increase earnings and strengthen the availability of delivery supply," Arya said. Cofounder Navneeth Kannan, who leads product and AI, described Pune as the company's training ground, with each delivery helping improve the model.

Antler India partner Nitin Sharma said the company's rider-first approach was a key factor behind the investment. Sharma noted that Dispatch's progress in a few months demonstrated the potential of a network built around improving delivery partners' productivity. Antler India also led a pre-seed round for Maasi, a Bengaluru-based childcare company, that raised Rs 6 crore alongside Better Capital, according to Bwdisrupt.

Dispatch Network's Funding Records

According to akta.pro company records, Dispatch Network secured its first disclosed external capital through a $215,000 round from Antler in December 2025, marking its transition from bootstrap operations to institutional backing. The same records list one funding round on file and total funding of $200,000 at the pre-seed stage, with the last round dated December 13, 2025. Dispatch Network was founded in 2021 and is headquartered in Pune.

Dispatch Network's Mumbai Launch and Order Targets

Dispatch plans to launch in Mumbai in November, marking its expansion beyond Pune. The company's next target is to reach 50,000 orders a day across five cities. Since its launch, Dispatch has completed more than 1 lakh deliveries, with monthly volumes increasing from 3,014 in June to 55,000 in October, and it currently handles around 3,500 deliveries a day.