Wahak wants to improve the lives of truck drivers in India

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wahak is not only an open market for truckers, but also provides drivers with services such as healthcare and discounted fuel cards. The Bangalore-based company announced today that it has raised a $14 million Series A. The round was led by Nexus Partners with participation from Foundamental, iSeed Ventures, Leo Capital, RTP Global and Tital Capital.

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This brings Vahak’s total fundraising so far to $20.3 million since its founding in 2020 by Karan Shah and Vikas Chandrawat. They met while studying mechanical engineering at IIT Kanpur. Shaha says that they decided to found Waak because of the problems he saw one of his relatives who owns a factory solve.

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“The problem was with the armor of the trucks,” says Shaha. “Irregular transportation, lack of communication channels, mistrust and lack of visibility were evident. Digging deeper, we realized that this is a huge nationwide problem that needs to be addressed immediately.”

At first, Wahak provided transport services in Raipur, Shahi’s hometown. After working for more than two years, “we understood the challenges a carrier faces every day,” he said. “Irregular earnings, insane work hours, lack of proper health care, just to name a few.” As a result, in 2019, Vahak switched to a pure technology model and launched it the following year.

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Vahak connects people who have items to deliver with truckers and allows payments to be made through apps. The company says Vahak Payments prevents fraud by keeping transactions secure, allowing drivers to get paid faster and providing fast refunds when needed.

The company’s goal is to expand its operations to 10% of the logistics markets in India and increase the number of users from 1.5 million currently to 10 million within a year.

Shaha says the Indian transport industry is “extremely disorganized and fragmented” despite being worth $200 billion. About 70% of trucks are owned by one person who also drives the truck. They usually rely on phone calls to secure bookings.

“It creates silos where a personal network of connections is the only way to know if someone is trustworthy,” Shaha said, adding that it usually takes two to three days for truck owners to find their next order. Shaha says truckers who join the platform can work 25 to 26 days a month instead of 12 to 15 days because bookings are faster.

The Waaka app also offers drivers medical consultations through the telemedicine company Medibuddy, health and transportation information, and fuel cards that can be used to buy gasoline at discounted prices. Shaha said the features were added because India’s trucking industry “lacks an efficient ecosystem to support the lives of truck drivers and smallholders.

The company is currently in a pre-earnings stage, but Shaha said it will monetize in the future through value-added services such as escrow, insurance, fuel, GPS and direct transaction fees.


Credit: techcrunch.com /

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