Delhi-based inter-city cab rental platform MyTaxiIndia (MTI) has raised US$1 million in a bridge funding from existing investor Nihon Kotsu — an 88-year old leading taxi rental company in Japan.
MTI is currently in talks with investors to raise US$5-10 million in a Series A round.
The firm will use the fresh capital for expanding services to tier II and III cities, technology development, marketing and branding.
MTI was founded in December 2013 by Anshuman Mihir, Mohit Rajpal and Satyakam Rahul. It offers inter-city taxi rental solutions and provides one-way fare ride to commuters for outstation trips. It also does city tours on an hourly basis for B2B clients.
The firm uses an in-house routing and prediction algorithm to automate trip-related processes.
MTI has over 12,000 taxis operating across 120 cities on more than 10,000 routes, through its affiliates. It plans to increase its presence to 200 cities by the end of FY2016-17.
Recently, MTI tied up with SpiceJet to provide passengers the option of booking a taxi to reach the airport at the time of ticket purchase.
In August 2015, the startup had raised US$500,000 in pre-Series A funding from Nihon Kotsu. Previously, it had received US$100,000 from GHV Accelerator as part of its 12-month acceleration programme.
“It has cracked the space where players like Ola, Uber and ZoomCar are still trying to figure out. The technology which it has built has taken it out from GMV model; otherwise, it will be profitable in a few quarters,” said Vikram Upadhyaya, chief mentor and accelerator evangelist at GHV.
Ichiro Kawanabe, Chairman of Nihon Kotsu, said, “My Taxi India and Nihon Kotsu share the common values that what we provide is not just a mean of transportation, but a superior ride experience which embodies the spirit of hospitality. Moreover, we pursue the similar business model of which provides an IT platform that connects customers and duly licensed taxi companies of the local area, but not illegal taxi service provides or unlicensed taxi drivers. As the companies that shares common values and business model, we believe we can exploits the good synergy across the border.”