RAAHO was established in 2017 to streamline the opaque and tedious processes of a fragmented trucking industry, which is primarily dominated by brokers. Intending to ease the lives and boost incomes of truck drivers and fleet owners, the company connects third-party logistics agencies to fleet owners powered by its real-time technology intensive matchmaking algorithm. RAAHO facilitates discovery of trucks assisted by real-time tracking of the shipments and on-time deliveries to all its shippers.
The $100 billion trucking industry in India is unorganised, largely offline and is plagued with deadhead and wastage, where a truck drives empty for a load. It’s 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. Intercity trucking space in India is one of the last frontiers of largely offline traditional sectors waiting to be disrupted by technology,” said Vinay Bansal – Founder – Inflection Point Ventures, in a statement.
In just three years, Raaho has covered 20 million kilometers with over 15000 trucks, catering to a customer base of 350 shippers. 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.