Onmove acquires Hyderabad-based Transin Logistics
Onmove raises undisclosed equity via pre-series A round along with venture debt to fund acquisition
Onmove, a high-speed, long-distance trucking aggregator, has acquired 100 percent stake of Transin Logistics, a Hyderabad-based trucking aggregation platform.
"Transin is a 100 percent asset-light, technology-enabled trucking solution business operating in the port ecosystem with an annual revenue rate of Rs 200 crore. Powered by a network of 34,000+ trucks catering to the exim and bulk cargo segments, Transin serves blue-chip clients such as Aditya Birla, Ambuja Cement, ITC, Adani and Nuvoco," says a release from Onmove.
Onmove has raised a pre series A round of equity funding, led by existing investor Oliphans Capital with participation from several angel investors including Haresh Chawla. The acquisition is funded through a mix of equity and debt with debt raised from Chennai-based AIF fund Anicut Capital.
"This partnership will help Onmove broaden its customer base in the commodity segment which is the largest consumer of trucks. It will further help Onmove strengthen its presence in the southern part of India thus ensuring better load stitching and higher utilisation of assets. Besides, it will help Onmove enter the port logistics business with focus on port-to-plant movement.
"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 Rs 600 crore."
Praveen Jain, Co-Founder, Onmove says: "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."
Pervinder Singh Chawla, Co-Founder, Onmove adds: "While road transportation dominates the logistics sector with a dominant share of 60 percent, 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."
Sravan Banoth, CEO, Transin, says: "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 revolutionise this sector together by sharing our highly stable and advanced technologies, product expansion capacities, and proficient port ecosystem."
Onmove plans to operate Transin independently, and "everyone from Transin, including the CEO, would continue with us."
