Start-up DriveU raises Rs20 crore in funding led by Amit Singhal
New Delhi: Chauffer-on-demand service start-up DriveU on Tuesday said it has raised Rs20 crore, in a round led by former Google Inc. executive Amit Singhal, with participation from Unitus Seed Fund, an existing investor.
DriveU, operated by Bengaluru-based Humble Mobile Solutions Pvt. Ltd, lets customers summon a driver for intra-city as well as outstation travel over an app, its website and through a call centre number. The platform also incorporates capabilities to check the driver’s arrival time and make payments electronically.
The latest funding comes after Unitus Seed Fund put $1 million in the start-up in February 2016., a year after DriveU was founded.
Singhal, who joins as the lead in the latest round, was earlier a senior vice president at Google and currently manages Singhal Foundation that supports projects in the domain of child education in India. He is also on the board of directors at fin-tech firm Paytm, among other companies.
“DriveU has demonstrated a deep commitment to enabling good wages for numerous underprivileged individuals. Their business is growing at a strong pace, while maintaining positive unit economics, which is key to building a successful company,” Singhal said in a statement.
After raising seed capital in 2016, DriveU scaled on the back of inorganic expansion to cover multiple cities. It acquired rivals CallAtHome in May 2016, Driverkart in May 2017, and Zuver in July 2017 to gain access to their respective driver networks in the National Capital Region, Mumbai and Chennai.
DriveU claims it has over 6,000 drivers on its platform offering their service in Bengaluru, Mumbai, Chennai, Delhi-NCR, Pune and Hyderabad. The chauffeurs are offered to both individual customers and businesses at rates starting at Rs99 per hour.
The company said it will use the capital to double down on the cities it currently operates in and invest in the platform. “DriveU, having grown at 16% month-over-month since inception, has recently witnessed accelerated growth. The funds will allow us to further expand our reach and offerings to our customers,” said chief executive and co-founder Rahm Shastry.
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