How Trucknetic Is Organising $300+ Billion Indian Logistics Sector

The Indian logistics market is largely unorganised.

According to consulting giant, EY, only 5.5-6% of players in logistics are organised.

It’s even more baffling considering the Indian logistics market is expected to reach $591 billion by FY27.

Any rational person could see it as chaos, however, visionary entrepreneur Arham Pratap Jain saw this as an opportunity.

He knew the logistics industry in India, particularly trucking, had remained largely unchanged for decades. 

“It was fragmented, inefficient, and ripe for disruption,” Arham told Startup Pedia in an exclusive interview.

This realisation sparked the idea for Trucknetic, a platform that would later break the status quo of how goods are transported across the country.

Engineer-turned-entrepreneur Arham got interested in the trucking scene during his Investment banker days at Ernst & Young. He worked closely with automobile players like Tata Motors, and Ashok Leyland.

One day, Arham had this chance encounter with some truck drivers. He started chatting with them and realised there were a lot of problems in the trucking industry that nobody was solving.

This got him thinking. He saw an opportunity to make a real difference and launched Trucknetic, India’s Uber for trucks.

Arham never looked for a regular job - he wanted to do something meaningful.

In the past, Arham had worked with different social impact organisations like Enactus and APJ Microfinancial Services where he worked to help people at the bottom of the social pyramid.

These groups tried to make the world a better place in various ways. Arham spent about three years in this scene, getting hands-on experience with social projects.

Now, here's where it gets interesting. 

His educational background includes some connections to prestigious institutions. 

Arham mentions, "I've been trained that as well, you know, through my experience in working with Stanford University, that is the design school, or IDEO lab, you know, through which empathy was taught to us." 

This experience with Stanford's Design School, renowned for its human-centred design approaches, had a profound impact on Arham's thinking and problem-solving methodology.

This empathetic approach would later inform his strategy for building Trucknetic.

The Eureka Moment:

The true eureka moment for Trucknetic came during the COVID-19 pandemic. Arham recalls a particularly harrowing incident:

"We moved pharmaceutical medicines with a driver going from Gujarat ports, Kandla to the Bhiwadi area in Rajasthan. At that time, only essential movements were happening. This driver only had two semi-cooked rotis, and there were no dhabas open. He couldn't even get drinking water. When he reached the destination, he was kept waiting for two days without food or water. When we found out, we got special permission from the Delhi government to deliver food and water to him."

This experience highlighted the urgent need for a system that not only optimised logistics but also cared for the well-being of drivers. 

It solidified Arham's commitment to building Trucknetic as more than just a business – it would be a lifeline for an often-overlooked community.

Zero to One Journey:

Starting Trucknetic was no easy feat. Arham and his team faced numerous challenges in an industry resistant to change. 

"It's a very primitive industry. For many years, decades, and centuries, the industry has been going exactly the way it is today. There hasn't been any change. It's a very, very difficult industry for anybody to understand with an open mind”, he explains to Startup Pedia.

Despite these obstacles, the Trucknetic team persevered. They started by developing a comprehensive platform, including mobile apps and a web interface. 

The Trucknetic app allowed customers to book trucks, while the Trucknetic Partners app (later renamed) managed truck drivers and fleet owners.

Recognising that not all users were comfortable with smartphone apps, they also created a website (app.trucknetic.com). 

The Delhi-based startup also launched the 'EVolev' platform for electric trucks in 2022. The platform aims to disrupt the EV ecosystem for trucks in India and accelerate the mass adoption of electric trucks.

This multi-pronged approach allowed Trucknetic to cater to all users, from tech-savvy startups to traditional small businesses.

Trucknetic's Unique Selling Propositions:

What sets Trucknetic apart in the crowded logistics space? Arham outlines three key factors:

1. Asset-light model: Trucknetic doesn't own trucks, instead focusing on optimising the existing fleet in the country.

2. Capitalised approach: By avoiding extending credit to customers, Trucknetic remains scalable.

3. Platform-first mentality: "We are a product company where we are trying to productise this logistics industry," Arham explains. This focus on technology and user experience sets Trucknetic apart from traditional transporters and brokers.

Trucknetic's Eco-Friendly Initiatives:

1. Optimising Existing Resources: Arham emphasises Trucknetic's asset-light model, stating, "We don't own assets, because we understand that, you know, already we deployed trucks in the country as an asset utilisation of 50%." 

By optimising the use of existing trucks rather than adding more vehicles to the roads, Trucknetic is indirectly reducing the carbon footprint of the logistics industry.

2. Reducing Empty Miles: The platform's ability to provide return loads for trucks helps minimise "empty miles" - the distance trucks travel without cargo. 

This increased efficiency translates to lower fuel consumption and reduced emissions per ton of goods transported.

3. Technology-Driven Efficiency: Trucknetic's use of AI and historical data to predict rates and optimise routes likely contributes to more efficient transportation planning. This can lead to shorter transit times and lower fuel consumption.

4. Vision for Net-Zero Emissions: Arham mentions a long-term goal related to environmental sustainability, "Our vision is to reduce the carbon footprint."

5. Alignment with Government Initiatives: Trucknetic's goals align with the Indian government's National Logistics Policy, which aims to reduce logistics costs. This cost reduction often increases efficiency and reduces environmental impact.

Arham added, “As the company grows, more specific eco-friendly initiatives will likely be developed and implemented, furthering our commitment to both social and environmental responsibility in the logistics sector.”

A Path to Profitability:

While exact figures are confidential due to an ongoing fundraising round, 

Arham laid some insights into Trucknetic's financial health:

"We are doing close to $2-2.5 million in annual revenue, with a gross margin of around 8-8.5%. Currently, we are doing close to 2000 trips per month. This financial year, we are looking to close with around $4-4.5 million as revenue, which will be double from last year."

The company is currently raising a pre-Series A round of $3 million, which will help fuel its growth and platform development. Arham projects that Trucknetic will become profitable by the end of the current financial year.

Empowering the Unorganized Truck Driver Community:

At the heart of Trucknetic's mission is a commitment to improving the lives of truck drivers. Arham's experiences have shown him the harsh realities these workers face:

"Their whole life, nobody calls them by their name. That's the basic thing. If you wouldn't be called by your name, your confidence will be trashed. They're always called by derogatory terms. They face RTO harassment and are often beaten without any fault of theirs."

Trucknetic aims to change this by treating drivers with respect, providing them with better working conditions, and offering opportunities for increased earnings through optimised routes and return loads.

Challenges and Overcoming Obstacles:

Building Trucknetic hasn't been without its challenges. Arham identifies two major hurdles:

1. Industry resistance: The primitive nature of the trucking industry made it difficult to introduce new technologies and ways of working.

2. Technology adoption: While smartphones are widespread, getting users to consistently use the Trucknetic app proved challenging.

To overcome these obstacles, Trucknetic adopted an omnichannel approach. They integrated with widely-used platforms like WhatsApp to meet users where they were comfortable. 

Arham explains, "We started using what they're already using. For example, we created tools on WhatsApp itself, where they would get all the conversations, messages, traffic details, tracking – everything onto WhatsApp."

This flexible approach has allowed the logistics startup to gradually introduce users to more advanced features while still providing immediate value.

Plans Ahead:

Trucknetic's ambitions extend far beyond its current operations. Arham envisions the company becoming one of the dominant players in India's logistics industry. He aims to facilitate "a few lakh trips every day" and contribute significantly to reducing the overall logistics cost in the country.

The company is also closely aligned with government initiatives like the National Logistics Policy, which aims to reduce logistics costs to a single-digit percentage of GDP. 

Arham sees Trucknetic playing a crucial role in achieving this goal: "We want to become the spearhead, the navigation to support this initiative and make sure that we can reduce the cost of logistics and achieve our $5 trillion mark by 2030."

The Unicorn Question: 

When asked about the possibility of achieving unicorn status (a valuation of $1 billion or more), Arham told Startup Pedia:

"For us, these are just tags, to be very honest. It can happen, it cannot happen – irrespective, we will continue to do what we are doing. It's not a milestone or an achievement for us. It's just a journey."

This attitude reflects Trucknetic's commitment to creating real-world impact rather than chasing valuations. 

Clearly, Trucknetic’s focus remains on revolutionising India's logistics industry and improving the lives of those who keep the country's goods moving.