Yebhi founder and seasoned entrepreneur Manmohan Agarwal second venture, Truxapp, a truck aggregation platform has reached breakeven within two years of its operations.
Launched in November 2014, the company claims to have become a well-established name within the Indian Tech-Logistics industry.
Manmohan-led startup has received $3.1 million in pre-series A funding from a group of angel investors and family offices including The Dhoot Family of The Videocon Group; Sandeep Sharma Former MD, MENA of a large Global Bank; VC Bothra and Family who are owners of a large shipping company in Singapore; and Mandhian Family, a family office which invests mainly in Real Estate.
Truxapp is a mobile app based logistic service, which connects Truck owners to Businesses. It provides a wide range of logistic services at the most competitive, market spot prices. Manmohan and his team have been successful in expanding the company’s operation pan-India, with an extensive reach of more than 150 cities across 21 states. The company also reached its operational break-even point in 2016, and maintains a healthy cash-flow.
Commenting on the journey towards building Truxapp, Founder & CEO, Manmohan Agarwal said, “As an entrepreneur, there are invaluable learnings that came from my first venture, which I have been able to apply in Truxapp. The very idea of creating a single source for logistics services across the country came after experiencing the extremely fragmented logistics market during my Yebhi.com days. Since then, it has been a great journey of learning and hard work to create a platform like Truxapp. Today, we have been successful in creating a tech platform which is solving logistics problems for companies across India,” said Manmohan Agarwal, Truxapp, Founder & CEO.
Agarwal has multiple learnings from his previous venture Yebhi.com which he founded in 2010.
He along with his co-founders, Dhruv Khandelwal, Sharad Pratap Singh and Naseer Ahmed have been able to expand exponentially with a network of more than 226,000 trucks, ranging from one to 40 tonner and trailers registered on its platform which services over 180 large corporate clients, including many blue-chip companies.
The size of the logistic market in India is approximately US$300 billion, contributing around 13% – 14% of India’s GDP. The road-freight portion of this logistics market in India is currently worth an estimated US$147 billion per year.
It claims to grow at a CAGR of around 15%. GST will add to the momentum of this industry through cost reductions in the end price of road-freight, via the consolidation of multiple state and federal taxes into one single rate.
The company currently serves over 180 large corporate clients, and has multiple types of leasing models that makes it a cost-effective solution. It helps vehicle owners earn more than what they did before. Commercial vehicles are available on monthly contract basis, per trip, by box/piece and on a weight basis.
An algorithm based ‘Pricing Engine’ is also being developed. Vehicle types span from SCV, MCV, LCV and HCV.
Truxapp, which has operations running in close to 110 cities, has slotted industry verticals that include e-commerce companies, courier companies, FMCG companies, cement and steel companies, among others.