Bengaluru-based logistics marketplace Vahak has raised $14 Mn in a Series A round of funding led by Nexus Venture Partners. Foundamental, iSeed Ventures, Leo Capital, RTP Global and Titan Capital also participated in the funding round.
Vahak has raised a total of $20.3 Mn since its first round in March 2020.
The startup plans to use the incoming funds to build tech infrastructure, expand the user base and provide value-added services to truckers and transport SMEs such as fuel cards, insurance, GPS, truck tyres & spare parts, and more.
Founded in 2019 by Karan Shaha and Vikas Chadrawat, Vahak is an open marketplace for logistics that connects shippers and transport SMEs to provide transportation services. These transport SMEs can also build their online transport brand on Vahak’s platform, in turn allowing them to grow their businesses.
Vahak claims to help truck drivers earn more than twice what they usually earn, by increasing truck utilisation on India’s major trucking routes. The startup claims to have more than 2 Mn users on its platform. It claims that it has also helped save over 27 Mn litres of diesel in a year, reducing the carbon footprint by 70,000 metric tonnes.
Alongside tertiary services, Vahak has also launched Vahak Payments, an in-app embedded finance service for transactions between truck drivers and consignors.
Karan Shaha, CEO, and cofounder at Vahak said, “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% of the Indian logistics market and go from 1.5 Mn users to 10 Mn users in the next year.”
Sameer Brij Verma, MD, Nexus Venture Partners, said, “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.”
India’s logistics market has seen a flurry of activity recently. Last week, 3PL startup Shiprocket bought an 80% stake in rival Pickrr for a $200 Mn deal, moving towards major consolidation in the market.
The logistics industry has emerged as an indicator of economic growth itself because of its ability to generate employment and its core expertise. The industry is set to grow to $380 Bn by 2025 at a CAGR between 10-12% according to Statista, employing 31 Mn people in the process.
