It’s been a 12 months for on-demand providers in India. Drivezy right now turned the newest to refuel after it raised a $20 million Sequence B.
The spherical was led by current investor Das Capital, with participation from automotive big Yamaha Motor Firm, Axan Companions and IT-Farm. The deal takes Drivezy, which was previously generally known as JustRide, to $31 million raised up to now. As well as, the startup has additionally inked a $100 million asset financing deal backed by Japan’s AnyPay, which is able to see new automobiles and motorbikes added to Drivezy’s fleet over the following 12 months.
Drivezy — which graduated Y Combinator and Google’s Launchpad Accelerator program — claims to have a fleet of round 8,000 autos that features 5,000 two-wheelers (motorbikes and scooters) and three,000 automobiles. That draws round 37,000 clients each month. Abhishek Mahajan, one of many firm’s 5 co-founders, advised TechCrunch in an interview that the fleet ought to add an extra 50,000-60,000 new autos, 75 p.c of which might be two-wheelers, due to the AnyPay deal.
Mahajan mentioned that Drivezy is at the moment market chief in terms of self-drive two-wheelers — “self-drive” which means autos that may be rented for a visit — with motorbikes and scooters accounting for “the majority” of transactions, however simply 20 p.c of income. (That’s against 80 p.c for automobiles.) Income itself is 25 p.c of the minimize of a rental.
Other than the asset financing deal — which is able to see AnyPay’s Harbourfront Capital car personal the brand new property — Drivezy makes use of peer-to-peer and dealership companions for its fleet. The peer-to-peer attraction facilities round growing the utility of autos (and offering extra earnings to homeowners); that’s an identical pitch to automobile dealerships, who can draw earnings from autos used on Drivezy that may in any other case sit idle ready to be bought.
However the AnyPay deal is a “recreation changer,” in keeping with Mahajan.
“Once we fast-forward 5 years, we are able to’t think about a state of affairs that automobile possession in India goes from eight p.c [right now] to U.S. degree of 80 p.c. India must skip a cycle on the tradition of possession and transfer right into a sustainable sharing of automobiles mannequin,” he added.
Drivezy isn’t alone in believing that future. The corporate’s important rivals embody Revv, which raised $14.three million led by Hyundai this 12 months, and Zoomcar, which has raised $100 million from buyers that embody Ford and India’s Mahindra & Mahindra. With Yamaha leaping aboard with Drivezy, India’s on-demand leases market has three automotive companies within the race.
For now, there’s no plan to maneuver abroad, however Mahajan mentioned that markets like Southeast Asia may turn into growth targets sooner or later, as soon as the India enterprise is extra developed.