This is the first round of external funding that the company has raised. Cargo Exchange plans to use the money to strengthen its technology platform and establish CRM (customer relationship management).
Founded in 2015, by Srihari Icharapu and Jagdeesan Vijayakumar, Cargo Exchange India acts like a connecting string between agents, truck owners and cargo owners. The company was later joined by Chandan Reddy Gangasani and Venkat Ramana Gottipati as co-founders.
The company helps cargo owners and agents by providing trucks to them on demand. Cargo owners post their load volume, and the truckers position it through the website or the app of the company. Their system auto-matches the cargos with apt trucks. Also, the company claims to follow-up throughout the tenure of the trip and assist users with updates and notifications.
The company has 8,000 trucks on board already and wants to have a size atleast of 15,000 trucks. It is currently serving 28 corporate customers and want the number to increase to 190. The company is in advanced stage discussion with ARC (Associated Road Carriers), ETO (Economic Transport Organization), RCI, Agility, Peninsula Logistics Company, BVC Logistics for supply requirements.
Cargo Exchange has tied up with the Future Group in Hyderabad and is already in talks to start its services in Bangalore and Chennai.
According to Novonous, Indian freight transport market is expected to grow at a CAGR of 13.35% by 2020 driven by the growth in the manufacturing, retail, FMCG and e-commerce sectors. Freight transport market in India is expected to be worth US$ 307.70 billion by 2020.
Cargo Exchange is competing with players like Trucksuvidha, FreightBazaar and TruckMandi.
Trucksuvidha, founded by Amit Punaini is also playing in the same sector and being a year older than Cargo Exchange, the company has an established market with 23,000 trucks (March 2015). Other players in the segment are FreightBazaar and TruckMandi.