Open road transport marketplace Vahak has announced its $14 million Series A fundraise led by Nexus Venture Partners. The funding round also saw participation from Foundamental, iSeed Ventures, Leo Capital, RTP Global, and Titan Capital. Vahak has now raised a total of $20.3 million since its first round in March 2020.
The funding will be used for rapid user-base expansion, building a stellar tech infrastructure by incorporating AI, ML, Big Data, and providing additional value-added services, said a statement. Vahak aims to create an all-encompassing ecosystem for truck suppliers and become the go-to digital solution for them, added the statement.
“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 per cent of the Indian logistics market and go from 1.5 million users to 10 million users in the next one year. 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,” said Karan Shaha, CEO and co-founder, Vahak.
Transport operations in India are dominated by unorganized players that contribute to 86 per cent of the entire market! This ultimately leads to high costs, lost opportunities, a number of inefficiencies, and a lack of transparency. This is why Vahak has focused on creating a supply-first platform that empowers transporters with the technology to find loads on demand, make their own digital brand and expand their business across boundaries, claims the company.
“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. As India aims to cross the $5 trillion economy mark, and build common wealth for all citizens, it is imperative that such tech-driven initiatives receive adequate support from all quarters. We appreciate the tremendous work Vahak is doing and are glad to support them in their journey towards enabling digital, sustainable and cutting-edge transport operations in India,” said Sameer Brij Verma, managing director, Nexus Venture.
