Uber-Backed Mobility Platform Everest Fleet Bags INR 50 Cr To Venture Into New Markets

Uber-backed fleet management startup Everest Fleet has raised INR 50 Cr ($6 Mn) in a strategic funding round from private equity firm Paragon Partners. 

The startup will utilise the capital to accelerate its growth plans and venture into new markets, The Economic Times reported.

“… We envisage a future where fleet management providers will partner extensively with cab aggregation and ride-hailing platforms to provide India’s urban citizens with comfortable commute and travel options… The company has a fleet of more than 13,000 cars,” said Everest Fleet cofounder and chief executive officer (CEO) Siddharth Ladsariya.

Founded in 2016, Everest Fleet operates a fleet of more than 13,000 green fuel (CNG and electric) cars. It has a presence in seven cities – Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune.

Commenting on the fundraise, Paragon Partners’ cofounder and senior partner Sumeet Nindrajog said, “Everest Fleet has a clear blueprint to unlock the immense potential for shared mobility in India through its fleet management solutions. We believe that it is well positioned to capitalise on the growing need for reliable shared mobility structures and are excited to partner with them on their journey.”

The new announcement comes three months after the fleet management startup secured $20 Mn in a funding round led by ride-hailing giant Uber. Everest Fleet also secured an undisclosed amount of capital from alternative investment fund Arka Credit Fund I last month by issuing non-convertible debentures (NCDs).

Excluding the latest funding round, the fleet management startup, as per Tracxn, has so far raised $28.3 Mn in funding across multiple rounds.

The capital will further bolster Everest Fleet’s plans to scale its offerings and services to non-metro cities. The company previously said it plans to expand its fleet size to 17,000 by March 2024. 

The development comes at a time when climate change and electric vehicles have emerged as the major buzzwords within the startup and the investor ecosystem. With the government actively batting for local players through production-linked incentives and subsidies, electric and clean fuel vehicles have seen rapid adoption. 

The ride-hailing industry, from Uber to Ola, has also jumped on the bandwagon and have been actively putting in measures to electrify their fleet. Despite challenges, these ride-hailing platforms continue to spend heavily on switching operations to electric as they look to capitalise on the adoption of EVs and growth of cab aggregator networks in the country. 

As per a report, the homegrown ride-hailing and taxi market is projected to notch up a revenue of $13.60 Bn by 2027.