RAAHO raises Rs 12.5 cr in funding from IPV, Roots Ventures, others
Summary
On-demand intercity trucking marketplace company RAAHO , has raised Rs 12.5 crore in Pre-Series A round of funding led by new investors IPV , Nitish Mittersain (Founder - Nazara ) and participated by its existing investors Roots Ventures , Venkatesh Vijayraghavan (Group CEO, Board Member, Cavinkare ) , Miten Sampat from CRED and others. The asset-light, capital-efficient company plans to utilize the fresh funds to grow nationally and make the whole product "100% On-Demand".RAAHO was established in 2017 to streamline the opaque and tedious processes of a fragmented trucking industry, which is primarily dominated by brokers. Its estimated that 25% of total travel by a truck is empty which leads to huge loss for the trucker, economy and also an environmental challenge.In a statement, Md Imthiaz, co-founder and CEO of RAAHO, said, We look forward to establishing Raaho as the largest digital freight marketplace in the country, thus impacting the lives of millions in the logistics industry and the country in general with enhanced income, increased efficiency and a positive impact on the climate.Commenting on the funding, Japan Vyas, Founder, Roots Ventures, said, Raaho is building a capital efficient model and is focused on creating a sustainable positive unit economics company. We believe that company has created the building blocks for digitization of the value chain and embarking on a period of growth.World over, we have seen online marketplaces disrupt traditional industries by bringing efficiencies of demand and supply and reducing friction by leveraging technology driven network effects and economies of scale. The company has stamped its authority in the trucking market by growing frugally and doubling its business compared to the pre-Covid figures with profitable unit economics.