Startup transport services marketplace Vahak on June 21 said it has raised USD 14 million (nearly Rs 110 crore) in a funding round led by Nexus Venture Partners. Other investors like Fundamental, iSeed Ventures, Leo Capital, RTP Global and Titan Capital also took part in the Series A funding round, Vahak said in a statement.
The company has now raised a total of USD 20.3 million (nearly Rs 160 crore) since its first round of funding in March 2020, it added. The funds will be used for rapid user-base expansion, building a tech infrastructure by incorporating artificial intelligence, machine learning, big data, and providing additional value-added services, the company said.
"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 one year. We plan on expanding rapidly, enabling millions of Indian transporters and businesses with the power of technology," Vahak CEO and Co-Founder Karan Shaha said.
Vahak has already integrated its platform with escrow payments and plans on bringing in services like insurance, GPS, spare part purchase very soon, he added.
Stating that tech adoption is increasing rapidly in the Indian logistics industry and the need for digitally-driven logistics services are even more in post-pandemic India, Shaha said, "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."
"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," Nexus Venture Partners Managing Director Sameer Brij Verma said.
As India aims to cross the USD 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, Verma added.Vahak said it has so far attracted over 1.5 million shippers and transporters to use the platform and book from over 6 lakh trucks for their transport needs.