MoveInSync raises venture debt from InnoVen Capital
The amount is estimated to be around $1 million, according to two people familiar with the company plans
- ABB sells Power Grids to Hitachi in $11 billion deal
- Petrol prices hiked for third time in 5 days, diesel rates rise. Check today’s rates
- Indians spending more on premium alcohol, driving growth in spirits market
- IIT Madras-Nasscom to train IT professionals in digital skills
- GIP starts process to monetize Highway Concessions One
Mumbai: Bengaluru-based transportation software solutions company MoveInSync Technology Solutions Pvt. Ltd on Tuesday said it has raised venture debt from InnoVen Capital. The company did not disclose the amount.
The amount is estimated to be around $1 million, according to two people familiar with the company plans. The company is in advanced talks to close a Series B (second) round of funding worth $10 million, said co-founder Deepesh Agarwal.
MoveInSync had raised a Series A (first) round worth $3.5 million from Inventus Capital Partners, Qualcomm Ventures and Saama Capital last year.
The company that was founded in 2009 by Agarwal, Akash Maheswari and Anuvrata Arora plans to use the funds for increasing its corporate partnerships in the current 13 cities, improve technology and address working capital needs.
“MoveInSync is providing a robust solution to a very fundamental issue faced by many large corporates with respect to managing employee transportation costs while at the same time ensuring employee convenience and safety,” said Vinod Murali, managing director with InnoVen Capital.
MoveInSync says it provides solutions to more than 20 firms that includes Google, Microsoft and Oracle. Over 100,000 employees use its services.
“We work with the taxi providers and provide end-to-end solutions, where right from booking the company cab, to the GPS tracking system, updates related to driver’s number, name, pick time, employee details and passwords on the app are provided by our systems,” says Agarwal.
The company also has solution that automatically tracks cabs with women employees and have special safety alerts and features for the same. The company charges companies a fixed fee of Rs.200 per employee per month.
MoveInSync started as a car pooling service called RideInSync and changed its model in 2009.
The carpooling industry in India is opening up. Carzonrent India Pvt. Ltd, a car rental company, acquired carpooling company Ridingo for an undisclosed amount this year.
Other start-ups in the space include PoolCircle and Let’s Ride. International companies like Brazil-based Tripda and French company Blah Blah cars entered the Indian market this year.
Most of these companies allow users to upload their corporate information through LinkedIn and company email IDs. “While these businesses are doing very well abroad, the approach has to be a bit different in India. Signing in through official email IDs and uploading corporate information adds to the entire trust factor,” says Raghu Ramanujam, founder at PoolCircle.
Currently, the industry is fragmented and nascent. The challenge for companies is to create trust in users in terms of service quality, safety and convenience.
To start off, most companies will have to enter into partnerships with corporates. In addition, they also need data on not just users but on weekly travel routes, timings and other details for creating robust technology systems.
Car sharing users globally are estimated to reach 650 million by 2030, according to Allied Business Intelligence, Inc., a market research company.
For MoveInSync, the focus may shift to consumer focussed services as well. “We will be targeting such services for consumers in corporate parks where employees can share rides in taxis from teh same corporate and business parks,” said Agarwal.
Editor's Picks »
- Does Reliance Jio see need to deleverage?
- 4 years since Senvion sale, turnaround continues to elude Suzlon
- Falling fuel prices, new axle norms to help cement makers save freight cost
- Tailwinds of debt reduction and annuity sales drive DLF’s shares
- Expecting a quick recovery in rural consumption will be foolhardy