Post Date : June 21, 2022
Vahak has announced a $14 million Series A fundraise as it scales operations with a sharp focus on supplier well-being and sustainability. Nexus Venture Partners led the funding round with participation from Fundamental, iSeed Ventures, Leo Capital, RTP Global, and Titan Capital.
The company has now raised a total of $20.3 million since its first round in March 2020.
Vahak will use the funding for user-base expansion, building a tech infrastructure by incorporating AI, ML, and Big Data, and providing additional value-added services. It aims to create an all-encompassing ecosystem for truck suppliers and become the go-to digital solution for them.
“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% of the Indian logistics market and go from 1.5 million users to 10 million users in the next 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.”Karan Shaha, CEO, and Co-Founder at Vahak
“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 commonwealth for all citizens, such tech-driven initiatives must receive adequate support from all quarters.”Sameer Brij Verma, Managing Director, Nexus Venture Partners
India’s road transportation operations are largely dominated by unorganized players that contribute to 86% of the entire market. This leads to high costs, lost opportunities, several inefficiencies, and a lack of transparency. Understanding the issue, Vahak has focused on creating a supply-first platform that empowers transporters with the technology to find loads on demand, make their digital brand, and expand their business across boundaries.
To further support the vision to improve the truck supplier ecosystem, Vahak collaborated with MediBuddy to provide over six lakh truck drivers with free online doctor consultations. And very soon, it is set to bring in a wide range of VAS (value-added services), like fuel cards, insurance, GPS, truck tyres, and spare parts. Alongside 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 consignors can pay with a single click. Vahak Payments are safe and fast and help mitigate major payment issues.
Through their supply-demand matchmaking, Vahak has helped save over 27 million liters of diesel in just one year, effectively reducing the carbon footprint by 70,000 metric tonnes. With climate change becoming increasingly worrisome by the day, steps like these go a long way in promising a greener tomorrow.