Delhi-based self-drive car services company Revv has secured $9 Mn in its series A round of funding led by Edelweiss Private Equity. The round was divided across equity and debt, where it received debt financing from Mahindra & Mahindra Financial Services and car leasing partner LeasePlan India.
The startup will deploy the raised funds towards expansion, development and launch of new products, and for building its proprietary technology.
Launched in 2015 by ex-McKinsey executives Anupam Agarwal and Karan Jain, Revv initially propositioned itself as a ride-sharing platform, it has now shifted its focus towards establishing itself as a mainstream mobility solution. The company has combined an asset-light sourcing approach with its delivery model, which is basically substituting hyperlocal parking with doorstep delivery, with an aim to make the customer experience seamless yet affordable.
Talking about the funding, Anupam Agarwal, founder, Revv said “We have witnessed a continuous uptick in the acceptance of our first product (car-sharing), with very encouraging repeat rates. More than half of our revenues come from repeat users. Users are realising that a combination of hired mobility options can be a true and practical alternative to owning a car. Our ambition is to change India’s ‘2% car ownership penetration’ to ‘50% car usage penetration’; with a vast majority of urban Indians getting affordable access to safe and comfortable mobility.”
Following a unique hub-and-spoke operating model, the car rental company ensures delivery and pick up for every single booking right from the customer’s doorstep.
Commenting on the investment, Pranav Parikh, Managing Partner, Edelweiss Private Equity said, “The on-demand economy will challenge the traditional asset ownership models, which bred inefficiency on both the supply and demand side. A vast majority of the 2 Cr cars on Indian roads are under-utilised, while the demand for vehicles continues to be strong. We believe that Revv’s approach to creating use-case based products will meet customers’ needs without compromising the convenience and flexibility of owning the vehicle, while allowing for better utilization of assets on the supply side.”
In December 2015, it released its mobile app on Android as well as iOS for users to explore models, availability and price even without signing-in. Earlier in July this year, Revv launched its operations in Chandigarh with a fleet of 25 cars across models (hatchback, sedan, SUVs).