Vahak, a road transport logistics startup, has raised $14 million in Series A funding round from Nexus Venture Partners, along with participation from Foundamental, iSeed Ventures, Leo Capital, RTP Global, and Titan Capital.
With this funding round, Vahak had raised a total of $20.3 million in funding so far.
The startup plans to use the funds for rapid user-base expansion, building a stellar tech infrastructure by incorporating AI, ML, Big Data and providing additional value-added services. It aims to create an all-encompassing ecosystem for truck suppliers and be a digital solution for them.
The Bangaluru-based Vahak was founded in 2019 by Karan Shaha and Vikas Chandrawat, It is a free-to-use, open marketplace for shippers and transport SMEs to find and connect to help truckers with their transportation needs.
The company claims that it is quietly disrupting the old logistics approach in India and helping truck suppliers make a name for themselves. On some major routes across India, the startup is helping truckers earn more than double by increasing their usage of trucks.
“Tech adoption is increasing rapidly in the Indian logistics industry and digitally-driven logistics services are the need of the hour in the current post-pandemic India. Through our platform, we are enabling truck drivers to operate for 25-26 days a month, as compared to the meagre 12-15 days they would operate otherwise. We are now all set to scale our technology and operations to capture 10 percent of the Indian logistics market and go from 1.5 million users to 10 million users in the next one year”, said, Karan Shaha, CEO and Co-founder at Vahak.
“We plan on expanding rapidly, enabling millions of Indian transporters and businesses with the power of technology. We have already integrated our platform with escrow payments and plan on bringing in services like insurance, GPS, spare part purchase, etc very soon,” he added.
Supporting its vision of improving the truck supplier ecosystem, it has collaborated with MediBuddy to provide free online doctor consultations to over six lakh truck drivers.
The company is set to bring a wide range of VAS (Value Added Services) very soon such as fuel cards, insurance, GPS, truck tires and spare parts, and much more. Along with tertiary services, it has also launched an in-app facility, Vahak Payments, to make transactions fast and secure. Through this app, truck drivers can request for advance/balance payment and the consignor can make the payment with a single click.
According to the startup, through supply-demand matchmaking, it has helped it save more than 27 million liters of diesel in just one year, effectively reducing its carbon footprint by 70,000 metric tons.
“Despite posting good growth, the Indian logistics market continues to face certain challenges due to the lack of technology integration. Platforms like Vahak are now bringing about the digital transformation of this sector by providing tech-driven features and services to aid millions of truck drivers and shippers in the country”, said, Sameer Brij Verma, Managing Director, Nexus Venture Partners.
In July 2021, Vahak had raised $5 million in pre-Series A funding round from RTP Global with participation from Luxor Capital and Leo Capital.
Vahak is more than just a product company. They are a fast-paced and well-funded startup that currently has the largest online transport marketplace community. With over 10 lakh+ Indian transporters on their platform, they aim to be more than just a product – they want to revolutionize the way B2B transportation happens in India!
With the Vahak app, users can book loads and lorries from a live transport marketplace with over 10 lakh+ GST and Aadhar verified transporters, expand transport business across India, and increase profits. Logistics is the backbone of the Indian economy, and they’re here to strengthen it by providing users with the technology for booking trucks and loads online.