Indian radio taxi booking service, Bookmycab is in conversation with various VC firms to raise a new round of funding. According to The Economic Times, the company is looking at raising equity-linked funding of up to INR 40 crore (nearly US$6.5 million).

The transaction is expected to close in April this year. Elara Capital, a financial advisory, has been appointed to run the mandate.

[UPDATE] Avinash Gupta, CEO, Bookmcab shared with e27 that the funds will be used to expand BookMyCab’s services in other metros and Tier II cities, as reported earlier by this author. It is in conversation with local cabs and authorities to expand services.

[UPDATE] “Investors have been interested in the radio cab space and BookMyCabs from quite some time. But we were waiting for the end of the fiscal year. We are now looking for investors actively,” added Gupta.

In July 2012, Bookmycab raised a funding from YourNest Angel Fund and Mumbai Angels. Existing investors are believed to own 25 to 30 per cent share of the company, and will be participating in the fresh round as well, as per ET report.

[UPDATE] “My mantra is affordability,” said Gupta commenting on the stiff competition in the radio cabs space. “We want to offer our services to the masses and cater to their needs irrespective of their financial situation. This is how we differentiate from other radio cabs.”

[UPDATE] BookMyCab recently launched a mobile application that allows users to book black and yellow local cabs. The application can function without a data plan, through SMS option.

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With growing commuting woes in India, radio cabs services have increased recently. Last year, radio cab service Ola Cabs raised US$20 million from Tiger Global and Matrix Partners.

Featured and Lead Image Courtesy: Bookmycab