In an interesting move, Drivezy, the Indian startup that wants to change the way private cars are used by having a car-sharing network in place and also have the option to use vehicles from a fleet managed by Drivezy, has announced that is gearing up for its next round of expansion which includes a launch in the U.S. in the coming weeks, according to a report by TechCruch.
As per the report, the company is all set to raise $100 million in equity funding and another $400 million in asset funding.
Speaking about the latest round of funding, Ankur Sengupta, Head of Business Development at Drivezy said, “The startup will leave the round open for about a year and continue raising it on a rolling basis, with the valuation varying accordingly. “The valuation we are working at now is $400 million, but we will keep accepting investments, at different valuations.”
The company hasn’t revealed any names as yet but it is expected to include a large number of companies from Japan and will also include investors from the U.S., Singapore, and China. Some of the more prominent companies who invested in the company earlier included Yamaha Motor Company, Axan Partner and IT firm, and also Y Combinator.
The company has been witnessing a gradual increase in the business and now has 53,000 bookings per month as compared to 36,000 booking three months ago. The inventory has also witnessed a sharp increase with the number of two-wheelers on the platform rising to 7,500 and nearly 3,500 cars by the end of this month.
Many believe that the ownership of a car in mature markets like the U.S. is becoming a rarity, whereas in India it’s still a rarity, even though the desire to use a car is not and with only seven percent of Indians owning a car and around 16 percent of the population owning a two-wheeler the time just seems ripe for companies like Drivezy to create a completely new supply chain for private car and two-wheeled vehicle usage.
It is worthwhile to note here that Drivezy has definitely benefitted from the favorable market conditions and the growing middle class in the Indian context, but the main challenge for the company now lies in expanding its business and taking it to new shores like the U.S. where the company is planning to set up its first pilot in April and test the waters to gather data about demands in various market sectors.