Yebhi Now! Agar­wal Kick-starts Truxapp with $3.1 mil­lion

The Economic Times - - Disruption: Startups & Tech - Taslima.Khan@ times­

New Delhi: Former founder of ecom­merce startup Man­mo­han Agar­wal has kick started his sec­ond stint at en­trepreneur­ship with a trucks ag­gre­ga­tion plat­form called Truxapp. Man­mo­han started work­ing on this ven­ture in Novem­ber 2014 and formed the com­pany in Fe­bru­ary 2015 in­vest­ing some of his own cap­i­tal. The ven­ture has since at­tracted $3.1 mil­lion in an­gel fund­ing from a host 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, Cap­i­tal Mar­kets and tech star­tups.

The fast pace of growth of the over­all logistics sec­tor is one of the key driv­ers for Agar­wal. “While a lot of cap­i­tal has been burnt in cre­at­ing the mar­ket for ecom­merce in the coun­try, truck­ing is a space where the mar­ket al­ready ex­ists. Truck­ing as an in­dus­try within the larger logistics space is grow­ing at the north of 12% every year. This is ex­pected to dou­ble in the next five to six years. The mar­ket is ex­tremely frag­mented with mul­ti­ple in­ef­fi­cien­cies which add up to freight costs,” said Agar­wal.

The last two years in this space have been mul­ti­ple com­pa­nies rais­ing ven­ture fund­ing.

These in­clude Rivigo which last year had raised $75 mil­lion in Se­ries C from pri­vate eq­uity firm War­burg Pin­cus and Black­buck which raised $70 mil­lion in March this year from Sands Cap­i­tal. How­ever, while most com- pa­nies in this space are fo­cussing on the in­tracity play and others are po­si­tion­ing them as long-haul play­ers, Truxapp counts its dif­fer­en­ti­a­tion in its fo­cus both on in­tracity and in­ter­city op­er­a­tions.

The Delhi-based startup, which has op­er­a­tions run­ning in close to 110 ci­ties, has slot­ted in­dus­try ver­ti­cals that in­clude ecom­merce com­pa­nies, courier com­pa­nies, FMCG com­pa­nies, ce­ment and steel com­pa­nies, among others. Agar­wal has mul­ti­ple learnings from his pre­vi­ous ven­ture which he founded in 2010.

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