Truck Lagbe, a trucking platform in Bangladesh, raised a $4 million Series A financing round led by International Finance Corprotation (IFC) and co-led by IDLC Venture Capital Fund I.
Other participants in the round included Millville Opportunities Master Fund, Shorooq Partners, Colopl Next, and TRU Fund I.
Truck Lagbe connects businesses with truck drivers and fleet owners through an app-based platform.
Over 80,000 truck owners and drivers are registered on the platform serving thousands of customers daily.
The company operates an on-demand marketplace serving SMEs and consumers, and a brokerage serving larger companies on credit. The company will utilize the capital to expand the team, acquire drivers, expand presence in new districts, and introduce value-added services.
“We are thrilled to have IFC lead our Series A,” says Truck Lagbe CEO and founder Anayet Rashid.
“IFC have backed several of the leading trucking platforms globally, bringing deep knowledge, expertise, and network. They are the ideal partner for our next phase of growth.”
“Trucking is a huge market in any country. Everything around you was on a truck at some point, and often several times. If we can optimize logistics through technology, we can save billions of dollars for consumers and businesses, and increase earnings for drivers,” says Rashid.
“Our vision is to build a one-stop solution for the trucking industry where users can source trips through the platform, purchase trucking accessories and services, purchase fuel, send payments, or receive financing to expand their fleet. A single click will move anything.”
“It is crucial for Bangladesh, which aims to become a middle-income country over the next decade, to have an efficient transport infrastructure and logistics services, which not only provides more support for the shipment of goods during the pandemic, but can also help transport exports to markets,” said Nuzhat Anwar, IFC’s Acting Country Manager for Bangladesh, Bhutan and Nepal.
“In addition to its financing, IFC is providing the company with knowledge and innovative support by leveraging insights from previous investments and will be connecting Truck Lagbe to more prospective clients.”
“Bangladesh’s logistics industry is transforming from manual to digital. Being in the banking industry over two decades, I have personally seen the growth of the logistics businesses and the crucial role it plays to keep the economic engine of our country thrive. So, we are extremely happy with this investment and to support the team as it directly impacts our GDP growth,” said Syed Javed Noor, Deputy Managing Director at IDLC and Partner at IDLC Venture Capital Fund I.
Truck Lagbe was founded in July 2017 by Anayet Rashid and Mir Hossain Ekram where customers booked trucks through a call center. It won the “Startup Challenge 2017” competition in 2017, organized by the Information and Communication Technology Division of the government of Bangladesh.
The company launched their app in September 2018, and raised a seed round led by Ravid Chowdhury, the former CFO of the Bangladeshi ride-hailing company Pathao. Other early investors include Betatron Venture Group, Seedstars, Mount Parker Ventures, Aria Group, Falcon Network, and Development Finance Asia.