Vahak Funding: Vahak Loads $14M Series A Funding Round

BANGALORE: Goods worth billions are transported on Indian roads every day and the engine of this supply chain is the road transport company Vahak. The company announced its $14 million Series A fundraising as it expands operations with a focus on supplier wellbeing and sustainability. Nexus Venture Partners led the funding round with participation from Fundamental, iSeed Ventures, Leo Capital, RTP Global and Capital. Vahak has now raised a total of $20.3 million since his first round in March 2020.

The funding will be used for expanding the user base, building technology infrastructure by incorporating AI, ML, Big Data, and providing additional value-added services. Vahak aims to create a global ecosystem for truck suppliers and become the go-to digital solution for them.

Founded by Karan Shaha and Vikas Chandrawat in 2019, Vahak is an open and free marketplace for shippers and transport SMEs to discover and connect with truckers to meet their transport needs. The startup has shaken up the outdated logistics approach in India and helped truck suppliers make a name for themselves. On some major roads across India, Vahak is helping truckers earn more than double what they usually earn, by increasing truck utilization.

Karan Shaha, CEO and Co-Founder of Vahak said, “Technology adoption is increasing rapidly in the Indian logistics industry and digital logistics services are the need of the hour in today’s post-pandemic India. Through our platform, we allow truckers to operate 25-26 days per month, versus the meager 12-15 days they would otherwise have. We are now poised to scale our technology and operations to capture 10% of the Indian logistics market and grow from 1.5 million users to 10 million users over the next year. We plan to grow rapidly, enabling millions of Indian carriers and businesses to benefit from the power of technology. We have already integrated our platform with blocked payments and plan to bring services such as insurance, GPS, purchase of spare parts, etc. very soon.

In a statement, Sameer Brij Verma, Managing Director of Nexus Venture Partners, said: “Despite good growth, the Indian logistics market continues to face some challenges due to lack of technology integration. Platforms like Vahak are now driving the digital transformation of this industry by providing technology-driven features and services to help millions of truck drivers and shippers nationwide. As India aims to cross the $5 trillion mark and create common wealth for all citizens, it is imperative that these tech-driven initiatives receive adequate support from all sides.

Transport operations in India are dominated by unorganized players who contribute 86% of the entire market. This leads to high costs, lost opportunities, a number of inefficiencies and a lack of transparency. That’s why Vahak has been focused on building a procurement-focused platform that empowers carriers with the technology to find on-demand loads, build their own digital brand, and expand their business. across borders.

Supporting their vision to improve the truck supplier ecosystem, Vahak has collaborated with MediBuddy to provide over six lakh truck drivers with free online medical consultations. And very soon, it should provide a wide range of after-sales services (value added services), such as fuel cards, insurance, GPS, truck tires and spare parts. Along with tertiary services, Vahak has also launched Vahak Payments, an in-app feature to make transactions faster and safer. Truck drivers can request advance/balance payments and shippers can pay with one click. Vahak payments are safe and fast and help alleviate major payment issues.

Through their matching of supply and demand, Vahak has saved more than 27 million liters of diesel in just one year, reducing the carbon footprint by 70,000 metric tons. With climate change becoming more worrisome by the day, measures like these go a long way towards promising a greener future.

(The one-stop destination for MSMEs, ET RISE provides news, views and analysis on GST, exports, finance, policy and small business management.)

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