New Delhi: Self drive car rental aggregator JustRide has raised $400,000 in a pre-Series A round from a group of angel investors including Dheeraj Jain, partner at Redcliffe Capital.
JustRide said it will use the money to enhance its technology. The company is in advanced talks with an Indian fast moving consumer goods (FMCG) company to raise $2 million in Series A round. The round should close in two months, Ashwarya Singh, founder of JustRide said, declining to share more details.
The company was founded in April 2015. It last raised an undisclosed amount in an angel round which saw participation from Alok Mittal of Angel India Network, Zeeshan Hayat of Toppr.com, Nikunj Jain of Frankly.me, and Outbox Ventures’ Niraj Singh, among others.
It was founded in April 2015 by Singh and currently claims to have an inventory-light model. It aggregates cars from individual car owners and tours and travel operators.
It makes the cars available for end users either on demand at their door step or else at designated parking lots. It claims to have almost 320 cars on its platform on any odd day.
The company says it has a monthly revenue of Rs.1.2 crore and targets to reach a monthly revenue run-rate of Rs.4 crore by the year end. It claims to be doing over 500 daily bookings of Rs.1500-2500.
JustRide recently roped in Bharath P.N., former chief operating officer of Zoomcar as its executive director of operations.
The company competes with Zoomcar and Myles (Carzonrent) among other startups trying to grow in the self-drive car rental space.
Zoomcar raised $11 million from Sequoia Capital, Empire Angels and NGP in July 2015.
According to a report dated February 17, 2016 by market research firm Ken Research, car rental industry revenues in India are expected to grow at a compound annual growth rate of 24.6% from financial year 2015 to 2019.
The company has also tied up with cab aggregator service provider Uber. This tie-up allows commercial licence holding customers of JustRide to offer rides to Uber passengers by logging on to Uber’s network.