Online transport marketplace platform Vahak, operated by Epictus Solutions on Tuesday said it has raised $14 million (around Rs 107.8 crore) in a Series A funding led by Nexus Venture Partners.
The round saw participation from Foundamental, iSeed Ventures, Leo Capital, RTP Global and Titan Capital.
The fresh funds will be used to create an ecosystem for truck suppliers by expanding user-base expansion and building tech infra by incorporating artificial intelligence (AI), machine learning (ML) and big data, the company said in a statement.
To date, Vahak has raised a total of $20.3 million since its first round in March 2020.
“Through our platform, we are enabling truck drivers to operate for 25-26 days a month, as compared to the meagre 12-15 days otherwise. We are now all set to scale our technology and operations to capture 10% of the Indian logistics market and go to 10 million users from the current from 1.5 million in the next one year,” said Karan Shaha, co-founder and chief executive officer, Vahak.
Launched by Shaha and Vikas Chandrawat in 2017, Vahak enables logistics companies to connect with truck owners, brokers, and other transporters through its online platform. Vahak works as an open marketplace for shippers and transport firms to discover and connect with truckers to help with their transportation needs.
Shaha added, “We plan on expanding, enabling millions of Indian transporters and businesses with the power of technology. We have integrated our platform with escrow payments and plan on bringing in services like insurance, GPS and spare-part purchase very soon.”
Vahak had raised an undisclosed amount in a seed round of funding in June 2020. In July 2021, Vahak raised $5 million in its pre-Series A round of funding led by Russian venture capital firm RTP Global.
The logistics and truck aggregating space has seen continued interest in recent years. Blackbuck, Rivigo, Fortigo Logistics and others have raised significant capital in this space.
“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. 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,” said Sameer Brij Verma, managing director, Nexus Venture Partners.