IndusGo, a subscription-based car rental platform in India, has secured INR 100 Cr ($12.1 Mn) in funding from its parent company, Indus Motors.
The startup will use the funds to add 1,000 cars to its fleet of 489 and invest in technology development and talent acquisition to enhance its customer services. Since its inception in 2018, IndusGo has raised a total of INR 120 Cr.
The platform, founded by Afdhel Abdul Wahab, allows customers to book cars via its mobile app and website.
Currently, IndusGo is offering car rental services in Cochin, Bengaluru, Hyderabad, Trivandrum, and Chennai. However, with the upcoming entry into Hyderabad and Bengaluru markets, the company aims to offer its customers a seamless and convenient way to explore these vibrant cities.
Indus Motors claims to manage more than 6,000 employees, 75+ workshops, and 100+ sales outlets in India. The company also claims an annual turnover of more than INR 2,500 Cr in FY22. With the latest funding, IndusGo aims to continue its growth trajectory and solidify its position as an emerging leader in the industry.
In India, IndusGo faces competition from other drive-rental service providers like ZoomCar, Revv, MyChoize, Myles, and DriveEasy. The car rental market in India was valued at over $1 Bn in 2019 and is anticipated to grow at a CAGR of 9.38% to become a $2 Bn space by 2026.
IndusGo’s founder, Afdhel AW, believes that the company’s focus on delivering an exceptional customer experience and gradually expanding its services across India will set it apart in the market. “Our commitment is to offer a safe, affordable, and hassle-free self-drive car rental service that meets the needs of our customers.
IndusGo is poised to continue its growth trajectory and solidify its position as an emerging leader in the industry by helping customers tackle challenges associated with the accessibility of self-drive rental cars through our hassle-free and digitally enabled experience,” he said.
IndusGo’s recent funding from its parent company will help the startup to scale up its operations and compete more effectively in the Indian car rental market.
With the company’s focus on providing a seamless customer experience, it has the potential to become a major player in the industry in the years to come.