Drivezy – Self Drive Rental Service in India Raises $20M

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Two years ago, we added Drivezy (formerly JustRide) to our portfolio and in such a short span of time, Drivezy has become one of the biggest marketplaces in India for renting cars and motorbikes.

Drivezy is constantly adding more funds to keep its fuel tank full for a long and successful journey. For instance, it has raised $20M in Series B round led by Das Capital (other investors include Yamaha Corporation, Axan Partners and IT-Farm). Not just that, Drivezy has also signed a $100M asset financing deal with Japan based ICO (Initial Coin Offering) advisory service, AnyPay which is great. Keep driving forward, Drivezy!

Abhishek Mahajan, one of the company’s five co-founders, told TechCrunch in an interview that the fleet should add a further 50,000-60,000 new vehicles, 75 percent of which would be two-wheelers, thanks to the AnyPay deal.

Mahajan said that Drivezy is currently market leader when it comes to self-drive two-wheelers — “self-drive” meaning vehicles that can be rented for a trip — with motorbikes and scooters accounting for “the bulk” of transactions, but just 20 percent of revenue. (That’s opposed to 80 percent for cars.) Revenue itself is 25 percent of the cut of a rental.

Aside from the asset financing deal — which will see AnyPay’s Harbourfront Capital vehicle own the new assets — Drivezy uses peer-to-peer and dealership partners for its fleet. The peer-to-peer appeal centers around increasing the utility of vehicles (and providing additional income to owners); that’s a similar pitch to car dealerships, who can draw income from vehicles used on Drivezy that would otherwise sit idle waiting to be purchased.

But the AnyPay deal is a “game changer,” according to Mahajan.

“When we fast-forward five years, we can’t imagine a scenario that car ownership in India goes from eight percent [right now] to U.S. level of 80 percent. India will have to skip a cycle on the culture of ownership and move into a sustainable sharing of cars model,” he added.

Please read the full story at TechCrunch.

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