Yebhi Now! Agarwal Kick-starts Truxapp with $3.1 million
New Delhi: Former founder of ecommerce startup Yebhi.com 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 Yebhi.com which he founded in 2010.