Online freight aggregator TruckEasy gets investment from Tata Motors unit
Tata Motors Finance Holdings, a wholly-owned subsidiary of Tata Motors Ltd, has picked up a 26% stake in online freight aggregator TruckEasy for an undisclosed amount.
In a statement, Tata Motors said the acquisition was aimed at giving it insight into the technology-driven transformation in the freight logistics space and the market dynamics of intra-city freight movement.
Owned and operated by Loginomics Technologies Solutions Ltd, TruckEasy was launched in 2015 by Nikhil Thomas, Vikram Kodgi and Avinash Achar. It currently offers services within Bengaluru, allowing users to rent light commercial vehicles through its mobile platform.
TruckEasy said it will use the fresh capital to spread its footprint to more locations.
“Our plan is to expand to other cities and replicate the success we have in Bangalore,” said TruckEasy’s chief executive officer Nikhil Thomas.
Tata Motors said the data analytics provided by TruckEasy will be further used for research and development in order to help customise products.
“Through this investment from Tata Motors, TruckEasy will be able to access our wide network to grow the supply side and also to expand to multiple locations country wide,” said Girish Wagh, president–commercial vehicles business unit at Tata Motors.
Tata Motors is a global automobile manufacturer of cars, utility vehicles, buses, trucks and defence vehicles. It is the market leader in India for commercial vehicles.
The company joins other traditional automobile firms in backing new-age tech startups.
Earlier this year, Mahindra & Mahindra Ltd picked up a 16% stake in self-drive car rental startup Zoomcar for $27.6 million (Rs 176 crore) as part of a Series C round of funding worth $40 million (Rs 256 crore).
Ford Smart Mobility is also an investor in Zoomcar.
In the truck aggregation space, FreightBazaar, an online platform which connects truck users and suppliers, raised an undisclosed amount in a pre-Series A funding round led by Omphalos Ventures India in May.
There was also a recent shutdown in the space. TechCircle reported last month that Bengaluru-based logistics and truck aggregator Ezytruk Solutions Pvt. Ltd had ceased operations as it could not raise follow-on funding.