A logistics marketplace company based out of Bengaluru has recently announced that the company has raised a value of $14 million in its series A round of funding. The round was led by one of the first India-Us venture funds initiated by Entrepreneurs, Nexus Venture Partners. Other companies that also participated in the round were iSeed Ventures, Titan Capital, Leo capital, RTP Global and Foundamental.
Since its very first round in March 2020, Vahak, which is an online transportation marketplace has raised total funding of $20.3 million. According to the company, the fresh capital funding has been planned to use for expanding the user base, building better tech infrastructure for better operations and providing services to truckers and SMEs that are value-added such as insurance for drivers and vehicles, GOS, fuel cards, spare parts, truck tyres and more facilities like the same.
The company helps truck drivers to earn more than twice what they earn often by increasing the utilisation of trucks.
Founded by Karan Shaha and Vikas Chandrawat in the year 2019, Vahak is an online Marketplace to provide transportation services by connecting shippers and transport SMEs. Online transport brands can also be made by these transport SMEs for expansion on the platform of Vahak which enables them to grow their businesses in the sector.
According to the claims by Vahak’s online platform, the company helps truck drivers to earn more than twice what they earn often by increasing the utilisation of trucks on the major trucking routes of the country. The startup has also claimed that it has over 2 million users on its online transportation platform and it has also helped more than 27 million litres of diesel in just a year, by reducing the carbon emissions by 70,000 million tonnes.
Other than the tertiary services that the company provides, vahak payments have also been launched by the company recently, which is an app-based financing service specially designed for transactions between consignors and truck drivers.
Founded by Karan Shaha and Vikas Chandrawat in the year 2019, Vahak is an online Marketplace to provide transportation services.
The CEO and co-founder of the company, Karan Shaha has shared that with the help of their platform, the company enables truck drivers that are associated with the platform to operate for almost 25-26 days of the month as compared to the limited 12-15 days that they used to operate apart from that. The company is also planning and all set to expand its technology and operations to take 10% of the logistics sector and market of India under its radar to reach the target of 10 million users by the upcoming year, which is now just 1.5 million. Adding to this, Managing Director of Nexus Venture Partner, Sameer Brij Verma said that even after operating at a great scale and posting good growth, various challenges are faced by the logistics sector of India continuously, due to the lack of right technology unification. According to Verma, Vahak is one of the emerging platforms that are making efforts to bring a digital transformation into the scenario of the logistics industry by providing it with new tech-driven features and other services to help the shippers and truck drivers operating in the nation.
Recently, a rush of activity has been witnessed in the logistics market of India. Shiprocket, which is a 3PL start-up, bought a stake of 80% in its rival company Pickrr for a deal worth $200 million, which has given Shiprocket a merger in the market. The logistics sector has been playing a vital role as an indicator of economic growth because the expertise of this sector has the potential to generate employment. According to Statista, the sector will increase to $380 billion by 2025, with a CAGR of 10 to 12 per cent, and employ 31 million people.