Trucking marketplace Raaho has raised INR 20 Cr ($2.4 Mn) from Inflection Point Ventures (IPV), Roots Ventures, and Blume Founders Fund as part of its extended pre-Series A round.

The funding round also saw participation from prominent angel investors like Paytm founder Vijay Shekhar Sharma and CRED founder Kunal Shah.

In a statement, the startup said it will use the fresh funds to expand its geographical presence in the country and strengthen its data science and ML capabilities to automate freight matching.

Founded in 2017 by Imthiaz, Raaho is a marketplace that connects shippers and truckers. The startup, headquartered in Gurugram, claims to have presence in over 15 India cities including Delhi NCR, Chennai, Bengaluru, Coimbatore, Mumbai, Hyderabad, Kolkata, Pune, Ahmedabad, Kanpur, and Karnal.

The startup offers on-demand trucking solutions through its suite of apps – Shipper App, Trucker App, and Driver App. It allows users to discover closeby verified vehicles, credible shippers, track freight-loaded vehicles in real-time, and make digital payments.

Raaho aims to bring operational and cost efficiencies in the Indian trucking industry that is traditionally unorganised.

“With this fundraise, we plan to expand our reach to more geographies in India, while also strengthening our data science and machine learning capabilities to enhance our freight matching efficiency,” Raaho cofounder and CEO Imthiaz said.

In 2021, the startup had raised INR 12.5 Cr in its pre-Series A round led by IPV and Nazara Technologies founder Nitish Mittersain.

Raaho competes with the likes of Trucknetic and Vahak, which recently acquired truck booking app Instalogist.

India’s overall intercity road logistics market is expected to be worth $299 Bn by 2025, according to an Inc42 report. Around 63% of the total demand is expected to come from on-demand intercity logistics. Most of this demand is likely to be impromptu with prepayment, unlike the traditional contractual model.