91Trucks Secures $5 Million in Series A Funding to Expand Commercial Vehicle Platform
91Trucks, a burgeoning platform specializing in commercial vehicles, has successfully raised $5 million in Series A funding. The funding round was led by Arkam Ventures, an early-stage venture capital firm, and included participation from existing investors such as Titan Capital’s Winners Fund, Sparrow Capital, and Atrium Angels.
Use of Funds
The newly acquired capital will primarily be utilized to enhance 91Trucks’ product and technology capabilities. The company plans to scale its team and open over 20 retail stores, significantly increasing its offline presence across India.
Current Store Footprint
At present, 91Trucks operates seven offline stores located in Delhi, Gurgaon, Faridabad, Meerut, and Jaipur. The company aims to expand its footprint into Southern cities like Hyderabad, Bengaluru, and Chennai, as well as Eastern cities such as Bhubaneswar and regions in Northeast India.
CEO’s Vision for Growth
Siddharth Sharma, CEO and cofounder of 91Trucks, shared insights on the company’s growth trajectory. “In the last two years, our revenue has grown 8x. With this funding, we plan to accelerate our physical footprint across Tier 2 and 3 cities, invest in technology—particularly AI—and strengthen our team,” he stated.
Comprehensive Services for Used-Truck Buyers
Beyond selling commercial vehicles, 91Trucks provides end-to-end support for used-truck buyers. This includes facilitating access to financing, managing insurance, conducting fitness checks, and assisting with RTO transfers.
Strategic Focus on Content Creation
Sharma emphasized that 91Trucks is already a profitable company at the operating level. The current funding will focus on growth strategies beyond launching new stores. “We are hiring for content creation in vernacular languages to ensure our messaging reaches a wider audience,” he mentioned.
Investment in Technology
The company is also investing in artificial intelligence and machine learning to simplify the awareness and research process for consumers, particularly small fleet owners and driver-operators.
Market Potential
Founded in 2022, 91Trucks is positioned as India’s youngest full-stack commercial vehicle platform. The company aims to simplify the commercial vehicle landscape and become the go-to solution for all related needs.
Ambitious Sales Targets
In the next three years, the company aims to sell 10,000 commercial vehicles annually, tapping into the growing demand in the sector.
Understanding the Market
Sharma pointed out that over 55% of commercial vehicle sales in India involve small commercial vehicles, crucial for last-mile delivery. These vehicles are predominantly owned by small fleet owners and driver-operators, making the market ripe for growth.
Challenges in the Logistics Ecosystem
Bala Srinivasa, managing director at Arkam Ventures, noted that India’s logistics and transportation ecosystem is heavily reliant on small fleet operators and driver-owners, who transport 80% of the country’s goods. These operators often struggle with access to high-quality used vehicles and financing options.
A Mission to Organize the Market
91Trucks is on a mission to not only streamline the buying process but also empower its consumers, ensuring they have the tools and resources they need to succeed.
Future Implications
With the support of its investors and a clear strategy in place, 91Trucks is poised to make significant inroads into the commercial vehicle market in India.
Closing Thoughts
The successful funding round is a testament to the growth potential and strategic vision of 91Trucks. As it expands its services and reach, the company is set to play a transformative role in the Indian logistics ecosystem.
Frequently Asked Questions
1. What is 91Trucks’ primary business model?
91Trucks is a full-stack commercial vehicle platform that sells commercial vehicles and offers end-to-end support for used-truck buyers.
2. How much funding did 91Trucks raise, and who led the funding round?
91Trucks raised $5 million in Series A funding, led by Arkam Ventures.
3. Where does 91Trucks currently operate its retail stores?
Currently, 91Trucks has seven offline stores in Delhi, Gurgaon, Faridabad, Meerut, and Jaipur.
4. What are the company’s future expansion plans?
91Trucks plans to open over 20 retail stores in various cities, including Hyderabad, Bengaluru, and Chennai, and aims to sell 10,000 commercial vehicles annually within the next three years.
5. What technological investments is 91Trucks making?
91Trucks is investing in artificial intelligence and machine learning to enhance user experience and streamline the buying process for its customers.
