With this, Onmove strengthens its presence in South India to ensure better load stitching and higher utilization of assets. Besides, it will help Onmove enter the port logistics business with a focus on port-to-plant movement, the company said.
Onmove has acquired the 100% stake of Transin Logistics, a Hyderabad- based trucking aggregation platform to broaden its customer base in the commodity segment which is the largest consumer of trucks.
Transin is a 100% asset light technology-enabled trucking solution business operating in the port ecosystem of India, with an annual revenue rate of INR 200 crore, the company said.
Powered by a large network of 34,000-plus trucks catering to the EXIM and bulk cargo segments, Transin serves major blue-chip clients such as Aditya Birla, Ambuja Cement, ITC, Adani, Nuvoco and others.
Onmove has raised a pre series A round of equity funding led by its existing investors Oliphans Capital with participation from several marquee angel investors like Haresh Chawla. This acquisition is funded through a mix of equity and debt. Venture debt is raised from Chennai based AIF fund Anicut Capital which has also participated in an equity round, the company said in a media release.
With this, Onmove strengthens its presence in South India to ensure better load stitching and higher utilization of assets. Besides, it will help Onmove enter the port logistics business with a focus on port-to-plant movement, the release said.
Transin, in turn, will be able to expand its user services by offering end-to-end logistical assistance for the transport of final products from plant facilities to the end market. With this acquisition, Onmove has achieved an ARR of ~INR 600 crore, the release added.
Praveen Jain, co-founder, Onmove, said, “Transin is a natural extension of our business as it helps us expand our bouquet of services, boost our network reach and further bolster our tech capabilities. This acquisition is our move towards creating a peerless tech-powered truck aggregation platform in India. Onmove intends to use inorganic growth as an active strategy to achieve expansion. This is Onmove’s first acquisition, and we intend to evaluate many such opportunities in the future”
“While the road transportation dominates the logistics sector with a 60% share, the shift towards multimodal infrastructure with a mix of rail, shipping, road, and air transport, will help reduce the congestion on roads along with low crude import bills. Another promising aspect of this association will be that Onmove will be able to explore opportunities in multimodal movement since transportation of bulk commodities is mostly done through a healthy mix of road and rail movement,” Pervinder Singh Chawla, co-founder, Onmove, said.
Sravan Banoth, CEO, Transin, said, “Over the last seven years, we’ve ingeniously created the bleeding-edge technology that has the potential to propel India’s trucking and logistics industry to greater heights. The aligned business model of Onmove positions us well to revolutionize this sector together by sharing our highly stable and advanced technologies, product expansion capacities, and proficient port ecosystem.”
