Bangalore-based vehicle sharing marketplace, Drivezy, has raised US$20 million in a Series B equity financing round, led by existing investor Japan’s Das Capital. New investor Yamaha Motor Co., and other existing investors Axan Partners and IT-Farm also joined.
The company will use the capital to expand its marketplace into new markets and integrate advanced services.
This round brings the company’s total equity fund-raise to date to US$31 million. This includes US$10 million funding from existing investors, including Das Capital, IT-Farm, CrowdWorks, and Axan Ventures.
Additionally, Drivezy has announced that it has secured US$100 million in an asset financing deal under it plans to induct over 50,000 vehicles. The funds will be deployed over a period of three years through a special purpose vehicle (SPV), called Harbourfront Capital, which will focus on investment in global shared assets.
Founded in 2015, Drivezy is a peer-to-peer self-drive vehicle-sharing network. Having partnered with over 2,000 owners, Drivezy has more than 7,000 operational cars, motorcycles and scooters on its platform, which are rented by over 37,000 customers every month. Since January 2018, Drivezy has doubled the number of vehicle listings on its marketplace and plans to deploy an additional 10,000 bikes in Bangalore and Hyderabad by December 2018.
Drivezy (formerly JustRide) was one among the few startups selected by US startup accelerator, Y Combinator, for the 2016 summer batch. Google is also an investor in the startup.
“The sharing economy in India is thriving and has picked up the real pace in the past five years, especially within the mobility sector. With less than eight per cent of Indian citizens owning a car, the rapidly growing car and bike sharing industry could provide convenient and sustainable mobility to millions of urban Indian residents. This fresh investment will allow us to cement our foothold as the market leader in a growing Indian vehicle sharing market,” said Co-founder and CEO Ashwarya Singh.
Drivezy’s vehicle sharing marketplace is a strategic alternative to outright vehicle purchase for consumers. It allows vehicle owners to list their idle cars, motorcycles and scooters and turn them into profit-generating assets by renting the vehicles to customers at a fraction of the cost required to purchase a vehicle. Customers can rent a car or a two-wheeler from Drivezy on an hourly, daily, weekly and a monthly basis.
The company is aggressively scaling its bike and scooter rental divisions which have added 3,000 scooters in Bangalore and Hyderabad this year under a partnership with Honda Motorcycle and Scooter India. Drivezy also plans to deploy an additional 10,000 bikes and scooters in the two cities by December.