Hyderabad: 4TiGO, a startup that offers a technology platform for the logistics segment, launched its operations for Telangana and Andhra Pradesh to offer its technology platform to replace cash transactions with digital ones. It is a business-to-business platform and so far has about 1,000 players registered with it and another 2,000 likely to will come on board shortly, said Vivek Malhotra, co-founder of 4TiGo.
This platform can be used for spot-procurement of medium-to long haul trucks for goods transportation. Each vehicle will be given a gadget that will help with payments at toll gates and fuel stations. It can also be used by drivers to remit money to their families, he said.
4TiGo, which is backed by Nandan Nilekani and Accel Partners, allows live monitoring and tracking of the vehicles. The platform, which matches the fleet owners and service buyers, manages the complete contract once both the players agree on it, he said adding that it offered payment guarantee and fulfillment assurance.
“Truck drivers and fleet owners have been dependent on the use of cash for funding trips. Our platform makes the transition to electronic transactions easy,” he said adding that the truck- economy is a multi-tier system and needs monitoring at all levels. The company gets paid from those using the service as well as fleet owners.
“In Telangana and AP, we are focused on large number of SME fleet owners. We have also go enquiries from local lorry associations. We have recently expand into a new vertical on servicing the needs of the Indian ports for bulk, dry and containerized cargo. We see a lot of potential for this in these two States,” he said.
According to him, the logistics segment, both in the organised and unorganised segments, could be pegged around Rs 6,000 crore.
“The segment has suffered due to demonetisation as operations are cash-based. The industry has seen a significant disruption. Also, the demand in the economy, which has a direct bearing on logistics industry, has been low for some time,” he said.