From real-time payments for truckers to investments pouring in for startups – India’s logistics sector heats up in Unlock 1.0
- As interstate movement begins, tech-enabled
logistics companiesare expecting business to return to normal soon.
- With the rise in demand expected to set in, investments are also pouring in.
Logistics startups LetsTransportand Vahak have both announced their funding today.
- Meanwhile, Transport Corporation of India Limited (TCIL) has partnered with DBS Bank to offer real time payments to truckers across the country.
“Since the commencement of the lockdown, the logistics sector has been playing a key role in ensuring minimal disruption of supply chains for businesses offering essential goods. Now that the government has greenlit the delivery of non-essential goods, we are looking forward to businesses picking up the pace and resuming their growth trajectories, providing a fillip to the logistics space as well,” said Saahil Goel, CEO and cofounder of Shiprocket.
Investments pour in
Logistics startups LetsTransport and Vahak have both announced their funding today. LetsTransport has raised ₹10 crore from Blacksoil Capital. Pushkar Singh, Co-founder & CEO, LetsTransport, said that the company is working hard to convert this pandemic into an opportunity by maximizing the conversion of the unorganized sector into an organised one
“We are continuously scaling our network and improving our capabilities to help streamline urban logistics for enterprises in these trying times when enterprise businesses are increasingly looking to partner with organized logistics players to enable direct to consumer deliveries,” said Singh.
Meanwhile, another logistics startup Vahak has raised an undisclosed amount in seed funding led by Leo Capital, along with several other angel investors.
“The trust gap currently present in the Indian road transport market highly limits the business potential and expansion for transporters, agents and lorry owners. This is where Vahak steps in to leverage technology and help the stakeholders connect with each other seamlessly,” said Karan Shaha, Co-founder, and CEO, Vahak.
Earlier in April, logistics SaaS startup Fareye raised $25 million in a round that was led by Microsoft with participation from Eight Roads Ventures and Honeywell Ventures.
With the startups looking to expand their offering and the supply chain sector awaiting a rise in demand, companies are also innovating rapidly for the logistics industry.
Transport Corporation of India Limited (TCIL) has partnered with DBS Bank to offer real time payments to truckers across the country. The innovation has been developed through DBS RAPID (Real Time APIs by DBS) solution. With this solution, TCIL truck drivers receive an instant credit into their bank account, which they can then swipe at terminals or withdraw cash using ATMs.
“The DBS RAPID solution has strengthened internal controls, reduced our cost, and increased our pace of business. We are proud to have partnered with DBS Bank, which has enabled us to contribute to digital India in a meaningful way and drive India towards a digital economy,” said Ashish Tiwari, Group CFO, TCIL.
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