Vahak just isn’t solely an open market for truckers, but it surely additionally supplies drivers with companies like healthcare and discounted gasoline playing cards. The Bangalore-based firm introduced as we speak it has raised a $14 million Collection A. The spherical was led by Nexus Companions, with participation from Foundamental, iSeed Ventures, Leo Capital, RTP World and Tital Capital.
This brings Vahak’s complete raised thus far to $20.3 million because it was based in 2020 by Karan Shaha and Vikas Chandrawat. The 2 met whereas they have been learning mechanical engineering at IIT Kanpur. Shaha says they determined to discovered Vahak was due to the issues he noticed one among his kin, who owns a manufacturing facility, take care of.
“The issue was associated to truck reserving,” Shaha says. “Irregular freight, lack of communication channels, mistrust and an absence of visibility have been evident. On digging deeper, we understood that it was an enormous nationwide drawback that wanted enchancment instantly.”
Vahak initially supplied transportation companies in Raipur, Shaha’s dwelling city. After working for greater than two years, “we understood the issues a transporter confronted on a day-to-day foundation,” he mentioned. “Irregular earnings, insane work hours, lack of correct healthcare, to call just a few.” Consequently, Vahak pivoted to a pure-tech mannequin in 2019 and launched the following 12 months.
Vahak connects individuals who have items to ship with truckers and allows funds by the apps. The corporate says that Vahak Funds prevents fraud by securing transactions, letting drivers receives a commission extra shortly and allows fast refunds if crucial.
The corporate’s aim is to scale its operations to 10% of India’s logistics markets and develop from 1.5 million customers at the moment to 10 million inside a 12 months.
Shaha says that the Indian transport business is “extremely unorganized and fragmented,” regardless of being price $200 billion. About 70% of vehicles are owned by one individual, who additionally drives the truck. With a purpose to safe bookings, they often depend on cellphone calls.
“This creates silos the place private community of connections are the one solution to know somebody’s credibility,” mentioned Shaha, including that it often takes lorry homeowners two to a few days to search out their subsequent order. Shaha says that truckers who be part of the platform can function for 25 to 26 days a month, as a substitute of 12 to fifteen days, as a result of bookings occur quicker.
Vahak’s app additionally presents drivers physician consultations by telehealth firm Medibuddy, well being and transit data and gasoline playing cards that can be utilized to purchase gasoline at discounted charges. Shaha mentioned these options have been added as a result of India’s trucking business “lacks an environment friendly ecosystem to help the lifetime of truck drivers and small homeowners.
The corporate is at the moment in pre-revenue stage, however Shaha mentioned that sooner or later it is going to monetize by value-added companies, like escrow, insurance coverage, gasoline, GPS and direct commissions on transactions.