Vahak, is a road transportation logistics firm based in Bengaluru. It has raised $14 million in funding from Nexus Venture Partners, Fundamental, iSeed Ventures, Leo Capital, RTP Global, and Titan NSE 5.93 percent Capital. Vahak has amassed $20.3 million in funding since March 2020.
The money will be used to recruit new customers, develop technology, and develop value-added services like gasoline cards, insurance, and GPS. As well as acquire spare components. According to Vahak, the company wants to build an ecosystem for truck providers. It also want to become their preferred digital solution.
Vahak: Indian Logistics Firm
Vahak is an unlimited, open marketplace for shippers and transport SMEs to locate and connect with truckers. It was founded by Karan Shaha and Vikas Chandrawat in 2019. Hence, it claims to be assisting truck drivers in earning more than twice as much as they normally do on some of India’s major routes. It is mostly by increasing truck utilization. The business boasts that their platform has over 2 million users. It claims to have saved over 27 million litres of diesel in a year. Thus, resulting in a carbon footprint reduction of 70,000 metric tonnes.
Vahak has also established Vahak Payments. An in-app embedded financing facility for transactions between truck drivers and consignors, in addition to tertiary services.
“Through our platform, we’re enabling truck drivers to work for 25-26 days each month instead of the 12-15 days they’d normally work,” Shaha added. Over the following year, they plan to scale their technology and operations to capture 10% of the Indian logistics market. Thus, growing from 1.5 million to 10 million consumers.”
“Despite its strong expansion, the Indian logistics business has hurdles due to a lack of technology integration,” said Sameer Brij Verma. He’s the managing director of Nexus Venture Partners. By providing tech-driven features and services to millions of truck drivers and shippers. The platforms like Vahak are bringing the digital transformation to this sector.
Other logistics industries
Recently, there has been a rush of activity in India’s logistics business. Some of the trucking marketplace’s companies include Blackbuck, ShipRocket, and Rivigo. Last week, 3PL company Shiprocket paid $200 million for an 80 percent share in rival Pickrr, indicating that the market is consolidating.
Because of its ability to produce jobs and fundamental skills, the logistics industry has emerged as a leading indicator of economic progress. The market will increase to $380 billion by 2025, with a CAGR of 10-12 percent, employing 31 million people.