UAE-based truck aggregator startup Trukker is expecting revenues to accelerate by 20 to 30 month-on-month in Saudi Arabia, driven by 20,000 trips per month this year, company founder and CEO told Argaam in an exclusive interview.
“Presence in the Kingdom is important for any serious business in MENA. Saudi Arabia is a very young and dynamic economy that offers huge domestic growth based on consumption of its indigenous population,” Gaurav Biswas said.
The company, which raised $1.4 million in a seed funding round led by Saudi-based venture capital firms Raed Ventures and Riyad Taqnia Fund last month, will commence offering the “Last Mile” delivery business line by the second half of the year.
Biswas talks about his company’s new funding, expansion as well as “aggressive” hiring plans for the Kingdom.
Q: What were the reasons behind the new seed funding round?
A: Trukker is a technology-enabled, on-demand truck aggregator. We have grown 2000 percent in the first year of business. The founders financed the business during the initial growth stage, owing to their confidence in the business model and the potential of Trukker adding value to the industry, both on the demand and supply sides.
Transportation is a very traditional business, and it is time that technology is used to organize this sector and increase efficiency with higher asset utilization. The seed fund has been primarily raised to increase footprint, expand operations and enhance our performance standards in the geographies we are already functioning in. We are currently doing cross-border transactions to Saudi Arabia, Kuwait and Oman along with significant domestic cargo movement within the UAE. The seed fund will help us have an on-ground presence in the regional GCC markets along with sufficient infrastructure at the borders to support our cargo movements.
Q: How do you plan to use the new money in terms of expansion?
A: The funds will be used to hire the smartest and the most ambitious people into our team. There will be investments made towards marketing, branding and upgrading our operating infrastructure. Parts of the fund will also be invested into creating processes for asset and service screening along with a focus on continuous quality control.
Q: What are your plans for Saudi Arabia?
A: We are currently working with few of the very large potential clients in the Kingdom. We are setting up our services to tackle the cross-border and domestic transportation business in the Kingdom, starting from an on-ground presence in Dammam and Jeddah. By the second half of 2018, we will also cater to the “Last Mile” delivery business line replicated from its services in the UAE. Our technology is going through an upgrade to offer an Arabic interface to the clients in Saudi Arabia.
Q: What reasons are driving you to enter this market?
A: Presence in the Kingdom is important for any serious business in MENA. Saudi Arabia is a very young and dynamic economy that offers huge domestic growth based on consumption of its indigenous population. The country also offers a large pool of educated workforce that is keen to make a difference. We believe that technology-driven transport and logistics will significantly improve asset utilization, reduce costs for industry, bring about standardization, generate employment and create wealth over the long-term.
Q: You have talked about “aggressive” hiring in Saudi. Can you share details?
A: Trukker’s business requires on-ground sales and operations teams to service clients and offer efficient management to its vendors. We estimate the quantum of business in Saudi Arabia will require aggressive hiring to cater to such demand. We are looking for smart and ambitious individuals who are keen to make a difference in the logistics and supply chain industry.
Q: What major challenges do you foresee for your company in the Kingdom?
A: Logistics is a complex business with multiple moving parts. There are varying challenges faced at every stage, in any given transaction, whether it is moving cargo or clearing shipments at ports. We do not estimate any additional challenges in Saudi Arabia, but we are prepared to learn local regulatory requirements and business practices. Our strong partnerships with local Saudi businesses give us the confidence to become a significant player in the Saudi market rapidly.
Q: What kind of growth, revenue and profit do you expect in the first year of operation?
A: We have started doing cross-border transactions to Saudi Arabia since the last quarter. We estimate a 20-30 percent month-on-month revenue growth throughout 2018. We estimate to handle 20,000 trips per month in the country by the end of the year.
Q: What kind of job opportunities will your company create for Saudis?
A: We are keen to hire locals for all available roles that suit their experience, skills and ambitions. We will be inclined to onboard young professionals who are hungry for achieving success in a technology-driven business that is disrupting a very traditional industry. Hard work, innovation, and perseverance drive Trukker, and its teams.
Q: Do you plan to expand in other countries in the region, and when?
A: We will be expanding into Oman, Bahrain, Kuwait and Egypt in 2018.
Comments
{{DisplayName}}
{{ElapsedTime}}