“More than 2,00,000 transport SMEs have joined the platform so far and roughly about 75-80% per cent of them are small-scale companies. We saw 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 saw 30 per cent more small users than usual,” Karan Shaha, Co-founder and CEO, Vahak told TheSpuzz Online.
The capital will be deployed towards hiring and enhancing the company’s technological capabilities apart from expanding its client base and network. The startup serves the marketplace gap for freight and unique goods transportation for unique varieties of cargo wherein trucks stay idle at any offered point of time due to operational inefficiencies triggered by a lack of technologies. Vahak mentioned this causes monetary losses for truckers and the logistics sector on a every day basis. The platform enables transporters to optimize their car utilization by way of on line load booking.
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Vahak’s operating model is akin to China’s digital freight platform Full Truck Alliance that was reportedly valued at $24 billion in its debut on the New York Stock Exchange last month. Vahak aggregates transport service operators from across India and does not personal or operate its personal fleets. It makes use of an auction marketplace app which permits prospects to straight connect with transporters and truck owners and book trucks, trailers, and loads on shared cars, and so on. The marketplace also permits transporters to build an on line brand for their company, produce leads by leveraging a pan-India network, and boost their income generation by enabling them to run their cars for most days in a month.
“There are some very deep-rooted issues for transport SMEs and lorry owners in offline space. Manual and telephonic operational management, sales burden, and credit issues are the major challenges. We help these small companies leverage the technology and the huge network that we have created. Businesses are able to instantly increase their reach from 10-15 vendors to lakhs and are able to build trust and brand value for their business through verifications and profiling om Vahak,” added Shaha. The startup is hunting to add more than 1.5 million smaller enterprises and lorry owners to its platform by finish of this year.
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“Vahak is offering a service that addresses a universal human need in the transport of goods, in one of the largest and fragmented logistics markets in the world. By building an asset and working capital-light auction-style marketplace, the team has displayed low operational intensity, ability to scale, and business quality we look for in category-defining companies,” mentioned Yousif Al-Dujaili, Venture Partner, RTP Global. The organization has created a service provider network of truckers covering about 8,000 places in India and currently manages more than 10,000 every day active loads. It is hunting at reaching $1 billion annual GTV in the next 12 months from the present more than $one hundred million annualized GTV run-price.