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Trukkin, a UAE and Saudi Arabia-based logistics and supply chain start-up, raised 26 million Saudi rials ($7m) to expand its business further and invest in technology.
The initial funding round, or Series A as it is known, was led by Saudi Arabia-based Emkan Capital with the participation from Impact46 Seed Fund, Taya Group and other strategic investors.
“I am very proud of the team and the growth we have achieved over the course of the last year as we expanded into Pakistan and grew revenues despite the difficult environment presented by Covid,” said Janardan Dalmia, founder and chief executive of Trukkin.
“We are excited to close the round with strategic investors … it confirms our vision of creating a world-class regional aggregation platform to enable logistics for the shippers and transporters.”
Launched in 2017, Trukkin offers digital logistics solutions for long-haul trucking by operating on an asset-light model, which means it does not own the trucks it uses. Shippers can log onto the app or online platform to transport goods, before picking a chosen supplier from the bidders.
In 2019, it raised over $3.5m that helped the company expand its services across the GCC. Trukkin has grown three times since the start of the pandemic and entered Pakistan last year. Today, it serves more than 12 countries in the Middle East region.
The company “has exhibited incredibly efficient use of capital and we are very impressed with what they have been able to achieve in such a short time frame”, Ghassan Aloshban, general partner at Emkan Capital, said.
“We look forward to supporting Trukkin, in serving hundreds of corporate clients and individual shippers as they aggressively look for expansion and growth in reach, capability and business volume,” added Mr Aloshban.
Trukkin is also venturing into FinTech to provide solutions for payments, insurance and financial services, the company said. These solutions lay the groundwork for more financial inclusion for the unbanked and increase much needed transparency and efficiency for suppliers, it added.
The company sees enormous growth potential in the logistics industry in the Middle East North Africa and Pakistan region.
“The size of the market is considerable at $50 billion. Currently, local fragmented players dominate the market in the region, and we are working to be an enabler that brings this fragmented market together on an integrated platform,” said Mr Dalmia.
Start-ups in the Mena region secured $1.03bn in funding last year, up 13 per cent compared with 2019, according to data platform Magnitt. E-commerce start-ups, along with FinTech companies, received the bulk of the funding.