ILine.ai Solutions has secured $500,000 in funding to transform last-mile logistics across India’s Tier-2 cities. The oversubscribed angel round comes from climate-tech and mobility investors, according to company reports.
The funding will help ILine expand into twelve Tier-2 cities by December 2025. These include Jaipur, Chandigarh, Lucknow, Bhopal, Ahmedabad, and Surat, as reported by Economic Times.
The startup plans to establish two regional operations hubs during this expansion.
“Clean mobility is no longer a niche 94it’s the new industry baseline,” said Prakash Dwivedi, founder and CEO of ILine.ai.
The company will allocate 55% of funds for regional expansion. Another 25% will go toward growing its driver network. The remaining capital will enhance AI systems and marketing partnerships, according to company statements.
ILine launched its dual-app platform in April 2025, as reported by Telematics Wire. The platform connects businesses with eco-conscious delivery drivers using electric vehicles.
Features include real-time tracking, carbon savings analytics, and OTP-based delivery verification.
The startup targets onboarding 20,000 EV delivery drivers across its network. This represents a significant scale-up from its current operations, industry observers noted.
Why It Matters Now
Tier-2 cities need different logistics solutions than major metros. ILine’s approach tailors clean logistics to local market needs. The company plans partnerships with state transport authorities, EV manufacturers, and NGOs.
These collaborations aim to drive EV adoption while creating jobs. Local economies could benefit from improved logistics infrastructure, stakeholders told various publications.
ILine’s AI-powered dispatch system optimizes routes and reduces idle time. This cuts operational costs and emissions for delivery partners. The system monitors carbon footprint in real-time, according to company reports.
Strategic Advantage
Businesses face increasing pressure to adopt sustainable practices. India’s evolving environmental regulations make clean logistics more important. ILine positions itself as a scalable alternative to fossil-fuel-based delivery.
The startup’s AI engine minimizes idle vehicle hours and optimizes multi-drop routes. It also increases daily trip counts per EV while monitoring environmental impact. These features benefit both drivers and enterprise clients, according to industry reports.
Drivers can lower operating costs through electric vehicles. Income predictability improves through the platform’s optimization features. Enterprise clients can showcase green credentials to customers.
Market Impact in India
ILine targets 30,000 daily orders across its 12-city network by Q4 2026. The company aims for net-zero Scope 1 and 2 emissions by 2028, as reported by Economic Times.
This timeline aligns with India’s broader sustainability goals. FMCG and e-commerce brands increasingly need green logistics partners. ILine’s expansion could serve this growing demand.
The funding round signals investor confidence in clean mobility solutions. Climate-tech investors see potential in Tier-2 city logistics transformation, market observers noted.
What Business Leaders Should Know
ILine’s model addresses several business needs simultaneously. Companies can reduce delivery costs while meeting sustainability targets. The platform’s real-time tracking improves customer satisfaction.
Carbon savings analytics help businesses report environmental impact accurately. This data supports CSR initiatives and regulatory compliance efforts.
The startup’s focus on Tier-2 cities creates new market opportunities. Businesses can expand delivery networks beyond major metros cost-effectively.
Regional operations hubs will improve service quality and response times. Local partnerships with transport authorities could streamline regulatory processes.
For logistics companies, ILine’s approach demonstrates scalable clean mobility solutions. The combination of electric vehicles and AI optimization creates competitive advantages in cost and environmental impact.
