The online marketplace for small and midsized road transport businesses and individual commercial vehicle owners Vahak has increased investment from RTP global with participation from Luxor Capital and Leo Capital.
More than 2,00,000 transport SMEs have joined the platform so far and roughly about 75-80% percent of them are small-scale companies. We noticed a huge surge of user activity especially from the medium and small businesses and lorry owners before and after the pandemic. During the lockdowns, we noticed 30 percent more small users than usual, Karan Shaha Co-founder and CEO.
Here capital will be deployed towards hiring and enhancing the company’s technological capabilities apart from expanding its customer base and network. The startup serves the market gap for freight and special goods transportation for various types of cargo wherein trucks remain idle at any apt point of time due to operational inefficiencies caused by a lack of technology. Just like that, this causes monetary losses for truckers and the logistics sector daily. The platform permits transporters to optimize their vehicle utilization through online load booking.
On the New York Stock Exchange last month Vahak’s operating model is similar to China’s digital platform that was reportedly valued at $24 billion in its debut and the marketplace allows transporters to create an online brand for business and generate leads by leveraging a pan-India network by enabling them to run their vehicles for most days in a month.
Businesses can instantly increase their reach from 10 to 15 vendors to lakhs and can build trust and brand value for their business through verifications and profiling on Vahak said by Shaha. By end of the year, the startup is very much looking forward to adding 1.5 million small businesses and lorry owners to its platform
Vahak provides a service that addresses a universal human need for the transport of goods, in one of the largest and fragmented logistics markets in the world and this company has updated a service provider network of truckers covering about 8,000 locations in India and already manages about 10,000 daily active loads. On achieving the $1 billion annual GTV in the next 12 months from the current $100 million annualized GTV run-rate.
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