Juspay-backed Namma Yatri raises $11 mn at $55 mn valuation from Google, Blume Ventures & Antler to fuel explansion

The latest fundraise marks the company's first external capital raise since its inception in November 2022.

Shan MS, chief growth officer of Namma Yatri's parent company Justpay, told Mint after announcing the fundraise that “it was raised with the aim of putting minimal pressure on the company, especially as it builds on the no-commission model, which no other ride-hailing player is doing at the moment.".

“We are clear since Day 1 that we do not want to build yet another ride-hailing app on the back of deep discounts. The latest investment will help us keep cash burn in control and give us sufficient time to master the no-commission model," Shan explained.

Also read: Juspay-backed Namma Yatri eyes small towns following fundraise

The funding is expected to help Namma Yatri expand its auto and cab services to more cities, the firm said in a statement announcing the fundraise on Tuesday.

Mint had also reported about the Bengaluru-based ride-hailing firm’s fundraising plans and its ambition to touch tier-2 and tier-3 towns and cities, in May. The company is now working to maximise earnings for its driver partners.

Many miles to go

“Expansion is at the top of our minds. The idea is to enable convenience for customers and maximum earnings for drivers," Shan had told Mint earlier, while noting that Namma Yatri was trying to solve the pain points in the ride hailing business with its open-network model.

The company plans to strengthen its presence in more than 15 tier-2 cities in south India, such as Mangalore, Kottayam, Madurai and Salem, among others, over the next few months, Shan had added. He explained that venturing beyond metro cities will be a natural progression for the mobility company.

In his recent interaction, Shan said that Bengaluru is already operationally positive for the company, while it is working towards achieving the same in other cities.

With the latest funding round, Namma Yatri will look to integrate public transportation through direct-to-driver and multimodal transportation models, according to the company statement.

Disrupting the disruptors

Namma Yatri is eyeing a big chunk of India’s ride-hailing market with its no-commission business model. Launched in November 2022 in Bengaluru, Namma Yatri was built on the Beckn Protocol, a government-backed, open-source protocol that allows the creation of decentralised, peer-to-peer networks for economic transactions. 

The protocol was also used to build the government’s Open Network for Digital Commerce (ONDC).

Shan, along with Juspay's chief product officer Magizhan Selvan, together lead Namma Yatri’s operations. 

Also read: Namma Yatri app: New app for auto rides allows Delhiites to choose fare, drivers

In March, the company was hived off as a separate entity under the name Moving Tech Innovations Pvt. Ltd, to allow it to maintain independence, Shan explained, while adding that the separation was also aimed at enabling fundraising for the company.

However, Juspay Technologies, a digital payments platform, remains Namma Yatri’s largest shareholder, while Juspay’s investors—including SoftBank and early-stage venture capital firm Accel—hold indirect stakes in the company.

Namma Yatri claims to have completed 46 million trips with 3.6 lakh drivers since its inception. It charges drivers a subscription fee—unlike rivals Uber and Ola that take commissions on each ride—with fares starting at ₹25 for auto rides.

“Namma Yatri’s focus on Digital Public Infrastructure (DPI) is pioneering. They are building the mobility of the future; one that is inclusive, efficient, and sustainable. We are thrilled to support them," said Fady Abdel-Nour and Nitin Sharma, partners at Antler, one of the early-stage investors that led the latest funding round.