Self-drive car and bike rental firm, Drivezy has raised $10 million in a part-equity and part-debt round. The equity investment totalling $5 million has been made by Axan Partners, Das Capital and IT Farm, while a group of banks and NBFCs including Mahindra Finance, ICICI Bank, Cholamandalam Finance and Shriram Finance has invested $5 Mn in debt in Drivezy.
Founded in April 2015 by Ashwarya Pratap Singh, Hemant Kumar Sah, Vasant Verma, Abhishek Mahajan, and Amit Sahu, Drivezy enables micro-ownership of personal cars and it connects vehicle owners with passengers looking for a ride. Passengers get access to a car at a fraction of what it would cost them to own it, and for owners, it provides an opportunity to generate revenue or share the cost of owning the car.
Drivezy, which is currently claiming to earn an impressive Rs 1.3 crore in monthly revenues, is focused on scaling its fleet by more than six times to 8,000 divided 50-50 between cars and bikes. The startup is focused on turning profitable by March next year.
Ashwarya Singh, CEO & Co-Founder, Drivezy said, “Considering the rising cost of vital assets and resources especially housing and transportation, I believe the future is a shared one. The world is moving on to a collaborative model of consumption and our mission is an aggressive journey to change the way people purchase, use and sell motor vehicles. The funds raised will fast-track our strategic expansion into new markets across India and global markets.”
Additionally, Drivezy also announced the launch of its first private Initial Coin Offering (ICO) to expand its peer-to-peer sharing marketplace for cars and bikes. The firm has partnered with Unocoin, an Indian Bitcoin exchange company, to accept Bitcoin as a mode of payment.
Speaking on the ICO, Aishwarya said, “With the growing popularity of Bitcoin in India, we feel that this is the right time to open alternative means in the sharing economy. This ICO is part of our vision to leverage the power of the blockchain to build an open, secure and transparent technology to globalize the Indian car sharing marketplace. Rental coins can potentially create almost 10 lakh micro-entrepreneurs who can supplement their household income by renting their assets.”
Drivezy (formerly known as JustRide) had made the switch from a self-drive car rental marketplace to the P2P model last year. Currently, Drivezy has 1,318 vehicles listed across four cities – Mumbai, Bangalore, Pune and Mysore.
Previously, it raised about $3 Mn (INR 20 Cr) in a bridge round of funding from Susa Ventures, Kima Ventures, Axan Ventures, SCM Holdings, IT-Farm, and Y Combinator partners Justin Kan, Qasar Younis and Paul Buccheit (the creator of Gmail).