Hyderabad-based truck aggregator TruckSumo.com has closed its operations as it joined a litany of startups that has fallen prey to a prevailing funding crunch, a person privy to the development told Techcircle.in
The website is still live but users are not able to place orders and the company’s customer care is also not working.
The initial signs of distress came to the fore in June when it was first reported.
This is the second shutdown in the truck aggregator sector this year. Last week, inter-city truck aggregator, TruckMandi shut shop.
The shutdown comes at a time when startups across sectors are reeling under the funding crunch as investors have turned cautious in placing bets on startups whose profitability is in doubt.
An e-mail query sent to TruckSumo did not elicit a response at the time of filling this report.
TruckSumo, operated by Pipip E-Services Pvt. Ltd, was set up in March 2015 by Nithin Baalay, Arun Rao and Abhishek Bajpai as an intra-city transportation service provider. It worked as an aggregator of mini-trucks and connected businesses with local logistical needs to service providers.
The company, which was one of 24 startups to be selected by the diversified Aditya Birla Group in December last year for an incubation programme, has not yet raised external funding.
Over the past two years, several startups have entered the road transport sector seeking to reshape the space known for arbitrary rates, all-cash transactions, delayed deliveries and a lack of transparency in deals,.
Online truck aggregators such as TruckSuvidha, Porter, BlackBuck, GoGo Truck, FreightBazaar, Moovo, Turant Delivery and CargoExchange have been trying to bridge the gap among companies, warehouses, transporters and truck drivers to ensure on-time delivery and optimum use of fleet capacity.