Lobb, a digital freight brokerage platform backed by 3one4 Capital, has announced the successful raise of $2.9 million in funding from high net worth individuals, including serial entrepreneur Rajesh Voddiraju and Sharada Nandakumar, CEO of Voya India. This brings Lobb’s total funding to date to $4.4 million. The funds will be used to scale the business and expand its network across new geographies in India.
Lobb has quickly emerged as the fastest-growing digital freight brokerage platform in India, connecting truckers and transporters across the country. The platform boasts an impressive roster of customers, including many top logistics brands. Currently, Lobb works with 1,200 logistics companies and over 5,000 fleet owners, encompassing more than 30,000 trucks. Operating in 22 cities with an asset-light model and a multilingual app, Lobb has positioned itself as a leader in the logistics industry.
Believing in creating a long-term sustainable business model, Lobb is currently profitable and on track to achieve 500 crores in revenue within the next two years. The company plans to expand aggressively into over 50 geographies, catering to more than 500 high-density routes. Over the past three years, Lobb has grown tenfold to reach an annual recurring revenue (ARR) of 170 crores, riding the wave of India’s ever-growing digital economy and the Make in India movement.
The newly raised funds will primarily be used to scale the business and expand Lobb’s network. The company is also looking to grow its team across functions to increase its fulfillment ratio by strengthening its technology with GenAI, machine learning, and big data. Lobb has integrated its platform with oil majors for fuel and large banks for Fastag, and plans to incorporate seamless annual insurance renewal for truckers and GPS navigation into its offerings. The company’s tech-driven proprietary features, including Truck Discovery, Load Matching, and Route Optimization, are set to revolutionize India’s logistics industry.
Anurag Ramdasan, Partner at 3one4 Capital, expressed his confidence in Lobb’s future, stating, “We foresee tremendous growth in Indian infrastructure in the coming years and are excited to see Lobb bring technology to streamline growth and efficiency in this segment. Venu and the team at Lobb have built one of the most capital-efficient logistics businesses that we have come across, and we are very excited to see their journey play out over the next decade.”
Venu Kondur, CEO and Co-Founder of Lobb, shared his enthusiasm for the company’s growth and the support of its investors. “We are delighted to have the support of such esteemed investors who share our vision of transforming the logistics industry. This funding will enable us to accelerate our technology-led growth and expand our reach, ensuring that we continue to deliver unparalleled value to our customers.”
Despite the Indian logistics industry having over 10 million long-haul trucks, the majority of which belong to small fleet owners who often struggle to find consistent loads on time, Lobb has managed to bridge this gap effectively. By eliminating the need for countless phone calls and unreliable middlemen, Lobb has made transporting freight simpler, more reliable, and efficient. Fleet owners using Lobb have increased their revenue by 30%.
Gopal Kaul, Lobb’s Director on Board, emphasized the confidence that investors have in Lobb’s leadership and business model. “The recent round of fundraising has shown progressive confidence of the investors in Lobb’s leadership team and the business model. Through digitization, we are committed to enhancing the efficiency and agility of the long-haul trucks business in India. In recognition of our business leadership, I am happy to share that Lobb is a key partner of the Government of India’s ULIP platform (Unified Logistics Interface Platform) efforts in building the digital gateway with industry players to access logistics-related datasets from various Government systems through API-based integration.”
Rajesh Voddiraju, Serial Entrepreneur & Angel Investor, shared his reasons for investing in Lobb. “What particularly impressed us about Lobb Logistics is not only their advanced technological solutions but also their prudent and frugal approach to business. The team has demonstrated exceptional resourcefulness in maximizing output while minimizing costs, ensuring sustainable growth. Their vision and dedication align perfectly with my investment philosophy, and I am confident that Lobb Logistics will play a crucial role in driving the next phase of growth in India’s logistics sector.” He added, “We are thrilled to invest in Lobb Logistics and support their innovative approach to revolutionizing the logistics industry. As India continues to experience rapid economic growth and embraces the Digital India initiative, the need for efficient, technology-driven logistics solutions has never been greater. Lobb Logistics is at the forefront of this transformation, leveraging cutting-edge technology to streamline supply chains and enhance operational efficiency.”
