Amazon and Softbank plan to lead $100 Million funding round in Drivezy
Softbank and Amazon in final talks to led $100-million equity financing round in
Drivezy is operational in 11 cities of India having a 15,000-strong scooter and approx 4, 000 cars in its fleet.
The ride-sharing segment is expected to become a market of $761Mn by 2022.
Mobility platform Drivezy has attracted the world’s largest technology investor and Japanese Conglomerate Softbank, consumer technology unicorn Amazon and several other investors to potentially lead a $100-million equity financing round.
Bangaluru based start-up is focusing to raise funds to expand its wings across the country and to enter into the overseas market too. The firm since the operation has emerged as the largest two-wheeler self-drive platform in India.
According to the ET report, Amazon’s bet in the company is likely to be based on Drivezy’s meta-search platform, Rayy. Focusing more on the technological aspect, Amazon may be looking to leverage Drivezy’s Rayy a multi-product platform which permits manufacturers, individuals to list products, ranging from shoes to two-wheelers, on its platform. It also allows users to share or rent the listed products. It is also being guessed that SoftBank is going to invest in the company through its $100 Billion Vision Fund. The deal is expected to be a mix of both debt and equity financing.
Drivezy came into action in 2015 by Abhishek Mahajan, Hemant Kumar Sah, Amit Sahu, Ashwarya Pratap Singh and Vasant Verma. It was previously known as JustRide. It offers car sharing service and peer-to-peer bike facility. Presently Drivezy is operational in 11 cities of India having a 15,000-strong scooter and approx 4, 000 cars in its fleet. It is working potentially to become the largest self-drive two-wheeler player in the country.
It has a monthly active user base of about 1 million. The company has till now raised $35 Million in equity financing. Among its investors include multi-asset alternative investment firm co-founded by former US presidential candidate Mitt Romney, Bain Capital, IT-Farm Corp, Das Capital and Accent Equity Partners a European investment firm. Drivezy has also got a $100-million asset financing deal backed by AnyPay. The company is planning to use the raised fund in creating vehicle fleet. The company has till now raised $128 million in asset financing.
Drivezy gives the opportunity to vehicle owners to give their cars, bikes, and motorcycle on rent to customers and earn money. Customers can rent a car or a two-wheeler from Drivezy for hourly, daily, weekly and monthly basis.
A Statista report says that the ride-sharing segment is expected to show an annual growth rate of 19.6%, resulting in a market of $761Mn by 2022.
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