Logistics platform Moovo raises funding from Yuvraj Singh Backed YouWeCan Ventures
On-Demand logistics booking platform Moovo has raised seed funding from cricketer Yuvraj Singh's YouWeCan Ventures and other angel investors.
The startup, founded by IIT alumnus Abhishek Anand and Anjani Kumar, has developed an online platform to book mini-trucks to help with the user's logistics requirement.
Users can book a truck through the company's mobile app, website or call-center and the company claims that the assigned vehicle will show up in under 30 minutes for pickup.
Kumar came up with the idea while running a side business in college. "I came up with the idea of buying a truck to run a side business and make extra some pocket money," said Kumar. He soon realized that idle trucks will cause losses to the business. "I learnt first-hand that market power in the logistics business comes from size and reach," said Kumar.
Founded in December 2014 the startup, currently operates in the Delhi-NCR region. It claims to process over 1000 orders per month from clients including consumers, small businesses and online retailers. The company plans to expand its service to 6 other cities by this year end.
Investors participating in this round include Vikram Chachra of Eight Innovate, former PayTm VP Pratyush Prasanna, Anindya Shuvra Sen, President of HR Reliance Jio Bijay Sahoo, Nitin Sethi, Sameer Nagpal of Cocubes.com and Doshi Family of Doshi Diagnostics.
The market for mini-truck transportation in India is estimated to be around $6 billion annually, of which only about 3-5% is organized. More than 90% of the market is fragmented with lots of small players consisting of single driver-owners resulting in a huge mismatch in supply and demand, according to Moovo.
"Moovo is in a great space which is seeing a lot of disruptions. The founding team also are IIT juniors and I found them very impressive with their drive and attention to detail," said Pratyush Prasanna, one of the investors in Moovo.
The startup currently competes with other such services like Blowhorn and The Karrier operating out of Bangalore as well as The Porter in Mumbai.
Earlier in April 2015, Porter had raised Rs 3 crore in funding from Kae Capital and said that it planned to expand its service into Delhi and Bengaluru in the coming months. In May 2015 Bangalore-based company TheKarrier raised seed funding of Rs 1.5 crore from Sol Primero, Outbox Ventures, and Frankly.me founder Nikunj Jain.