Pune, November 28, 2018: Bangalore-based vehicle sharing marketplace, Drivezy, announced today that it has raised a total of $20M in a Series B equity financing. The company will use the capital to expand its marketplace into new markets and integrate advanced services. Founded in 2015, the company offers car, motorcycle and scooter sharing services across 9 cities in India. The round was led by existing investor Das Capital. Other investors who participated in the round include Yamaha Motor Co. Ltd., Axan Partners and IT-Farm. With the recently concluded funding round, the company has accrued equity investments of $31 million in total.
“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 8% 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 CEO, Ashwarya Singh.
Additionally, Drivezy has secured $100M in an asset financing deal under which the company plans to induct over 50,000 vehicles. The funds will be deployed over a period of three years, through a Special Purpose Vehicle (SPV); Harbourfront Capital, which will focus on investment in global shared assets. A Special Purpose Vehicle is often used by companies to securitize assets. Its operations are limited to the acquisition and financing of assets as a method of isolating risk. The establishment of the financing mechanism by Anypay Inc. for investments in shared assets is ‘the first of its kind’in the growing Indian sharing economy. Drivezy has worked consistently with AnyPay to deploy innovative channels for financing and enlisting assets in its marketplace.
“India is a market with a huge potential for growth. However, we also understand that the country faces various hurdles to realize that potential. We have great relationships with companies across India and we will actively invest in projects and companies in the country. It has been a pleasure to work with Drivezy and we look forward to further invigorating the Indian shared mobility market,”said Shinji Kimura, Chairman of Anypay.
Drivezy’s vehicle sharing marketplace is a strategic and efficient 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 Pvt. Ltd. Drivezy also plans to deploy an additional 10,000 bikes and scooters in the two cities by December. The company has already doubled the number of vehicle listings on its platform since January this year.
“Over sixty years ago, Yamaha Motor was founded to explore what was possible on two wheels. This DNA is still with us as we invest globally in the future of urban mobility. We’re proud to invest in Drivezy, are impressed by the bold vision of the founders and look forward to productive collaborations with the company, ” said Amish Parashar, Partner at Yamaha Motor Ventures & Laboratory, Silicon Valley. Mr Parashar will serve as an observer on the board of directors at Drivezy.
Co-founded in 2015 by Ashwarya Singh, Abhishek Mahajan, Hemant Sah, Vasant Verma and Amit Sahu, Drivezy operates India’s largest peer-to-peer 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 the prestigious American startup accelerator, Y Combinator, for the 2016 summer batch. Drivezy is also backed by the internet search giant, Google.
Drivezy, formerly known as JustRide, started operations in August 2015 and is the pioneer of a peer-to-peer bike and car sharing service in India. Headquartered in Bangalore, Karnataka, Drivezy currently operates in eight other cities across India including Hyderabad, Kochi, Mumbai, Pune, Mangalore, Manipal, Mysore and Nagpur. The company aims to expand to five other cities including Chennai, Delhi NCR, Chandigarh, Jaipur and Kolkata over the next few months. Drivezy’s key financing partners include Axis Bank, ICICI Bank, Mahindra Finance, Yes Bank, HDFC Bank and Tata Motor Finance.
About Harbourfront Capital Co., Ltd.
Harbourfront Capital Co., Ltd. was established in October 2018 mainly for the purpose of asset investment in areas where technological innovation can be expected in the digital domain such as sharing economy, IoT etc. We will continue investing in various areas where we can expect growth both in Japan and overseas.
About AnyPay Co. Ltd.
As a mission “To realize a society enveloped by technology”, we are developing business in settlement and blockchain areas and provide settlement service in the settlement business. In the blockchain domain, in addition to developing the ICO consulting business, we established LayerX, a joint venture specializing in blockchains, with Gunosy Co., Ltd. Additionally, along with business development, we are also developing investment business. We are investing in domestic and overseas companies and projects in the areas of FinTech and Sharing Economy.
Entrepreneurs often need strong partners in order to scale their businesses. This is particularly true for those developing novel hardware systems, exploring new business models, or growing international ventures. Yamaha Motor Ventures & Laboratory Silicon Valley (YMVSV) exists to accelerate the efforts of teams driving disruptive change. YMVSV is a Yamaha Motor Group company and a wholly owned subsidiary of Yamaha Motor Co. Ltd. (Japan). Promising efforts sometimes raise venture capital. Financing these companies through strategic investments is a portion of our activity. For other ventures, strategic corporate partnerships might mean access to vehicles, technology, teams, hardware, infrastructure, or something else entirely. Whether investment, partnership, or both, we work collaboratively to create the future of industries ranging from personal transportation to industrial automation. (Visit https://www.ymvsv.com for more info.)
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|Funding amount (Equity)||Key investors||Year of funding|
|$1M||IAN Co-founder Alok Mittal, Niraj Singh, Nikunj Jain, Zishaan Hayath, Punit K Goyal, Anirudh Damani, Rohit Chokhan, and Palaash Venture||August 2015|
|$3M||Global investors – San Francisco-based Susa Ventures, Kima Ventures, Axan Ventures and ITFarm from Japan along with Y Combinator partners Justin Kan (Co-founder-Jutin.tv & Twitch.tv), QasarYounis (COO of Y Combinator) and Paul Buchheit (creator of Gmail)||November 2016|
|$7M||Axan Partners, Das Capital and IT Farm||October 2017|
|$20M||Das Capital, Axan Ventures, Yamaha Motor Co. Ltd and IT-Farm||November 2018|