Bengaluru-based Instavans Logistics Pvt Ltd. which was founded by Vinay Goel and Sanjay Shah in November 2014, has secured an undisclosed amount of funding from Dell Services President Suresh Vaswani. The startup recently received $2 million in pre-Series A funding from investors including Hero Eco Group’s MD Naveen Munjal; chairman-energy at GMR group, GBS Raju and Eka Software’s CEO Manav Garg. As part of the deal, Suresh will join the company’s board of directors.
Instavans is an on-demand platform that connects both shippers and truckers through its web and mobile platform. By aggregating a large number of local truck operators, Instavans intends to build a virtual fleet which is managed using the company’s technology platform.
The startup estimates that the Indian local (intra-city) trucking industry is worth $15 billion. Trucks transport around $2 billion tons of freight across the country every year. However, the market remains extremely fragmented with no dominant players in the industry. While trucking companies operating with 1-5 trucks account for 80% of market revenue, even large players have no more than 50 vehicles in their fleet. These large companies often do not own the whole fleet, and instead contract out to independent owner-operators.
Of late, the truck aggregation segment is catching investors’ attention. With players like TheKarrier, Moovo and Quifers etc. entering the space, competition is soaring with each passing day. The mentioned startups have also raised funding this year to expand their presence and growth. Last month, an on-demand logistics aggregator for relocation services, Turant Delivery acquired smaller peer Zippon for an undisclosed amount.