Shield: Not only is this an open market for trucks, but it also provides drivers with services such as healthcare and discounted fuel cards. The Bangalore-based company announced today that it has raised $ 14 million in Series A. The round was led by Nexus Partners, which included Foundations, iSeed Ventures, Leo Capital, RTP Global և Tital Capital.
This brings Vahak’s total collection to $ 20.3 million, as it was founded in 2020 by Karan Shaha և Vikas Chandravat. The two met while studying mechanical engineering at IIT Kanpur. Shahan says they decided to start Vahak because of problems he saw with one of his relatives who owns a factory.
“The problem was with fixing the trucks,” says Shahan. “Irregular cargo transportation, lack of communication channels, distrust, lack of visibility were obvious. Digging deeper, we realized that this is a huge national problem that needs to be improved immediately. ”
Vahak initially provided transportation services in Raipur, Shaha’s hometown. After working for more than two years, “we understood the problems that the carrier faced on a daily basis,” he said. “Irregular incomes, crazy working hours, lack of proper health care, a few.” As a result, Vahak turned to a pure technological model in 2019 and launched it next year.
The board connects people who have goods with shippers և allows them to make payments through apps. The company states that Vahak Payments prevents fraud by securing transactions, allowing drivers to pay faster and, if necessary, return the money quickly.
The company aims to expand its operations to 10% of India’s logistics market, from 1.5 million users to 10 million within a year.
Shahan says India’s transport industry is “extremely disorganized and fragmented”, despite being worth $ 200 billion. About 70% of trucks are owned by one person, who also drives the truck. They usually rely on phone calls to make reservations.
“This creates silos where the personal network is the only way to know someone’s trustworthiness,” said Shahan, adding that it usually takes two to three days for truck owners to find the next order. Shahan says trucks that join the platform can work 25 to 26 days a month instead of 12 to 15 days, as bookings are faster.
The board app also offers drivers medical advice through Medibuddy, a healthcare company, and health և transit information և fuel cards that can be used to buy gas at discounted prices. Shahan said the features have been added as India’s freight industry “lacks an efficient ecosystem that will ensure the lives of truck drivers and smallholders.”
The company is currently in the pre-revenue phase, but Shahan said it will monetize it in the future through value-added services such as backup, insurance, fuel, GPS and direct transaction fees.