Carzonrent sees biz tilting towards B2C, integrates online cab rental platform Qcabs
Carzonrent India Pvt Ltd, which started as a corporate leasing and cab rental service provider, is now focusing heavily on the consumer side of the business and has integrated the recently acquired online cab booking aggregator Qcabs with the parent brand. The firm expects to generate as much as Rs 300-400 crore worth of revenues from its online cab booking platform by 2015, founder and CEO Rajiv Vij told VCCircle.
“We are building Carzonrent as a consumer brand,” he said.
Carzonrent also runs a radio cab service under the brand EasyCabs, which focuses on point-to-point travel. As part of the recent restructuring, the mother brand is now being used for both outstation cab booking and local, fixed-hour cab rental by individuals and corporate clients.
The company’s EasyCabs brand competes with the likes of India Value Fund-backed Meru while the cab rental platform is competing with several online cab aggregators like Olacabs, Savaari, YourCabs, TaxiGuide and TaxiForSure.
According to Vij, Carzonrent is now clocking 400 transactions a day as an integrated online booking platform. “We believe that this online business has the potential to be as big as our current total business and in three years, it could be generating revenues of Rs 300-400 crore,” he said.
In May this year, the company acquired Sirius Mobile Works, which ran Qcabs.com, for an undisclosed amount. Qcabs was started in 2011 by IIT-Delhi alumni Gaurav Dosi and Reshav Singla, and post-acquisition, the co-founders joined Carzonrent.
Carzonrent is clocking revenues of Rs 25-30 crore per month, which gives it an annualised business of around Rs 300-330 crore, with 15 per cent margin. It has been growing its top-line at a CAGR of 35 per cent.
“When we started in 2001, the entire business was focused on the corporate sector for the first five years. Only during the past five or six years, we have built a retail business through efforts like radio taxi, to be present at airports, and also made foray into the online space,” said Vij.
At present, the firm’s corporate business and individual customer business are almost equal.
In terms of expansion, the firm will be investing Rs 150 crore in the next three years and is also looking at self-drive as a potential market. “We will be launching the self-drive model in seven cities at airports and we are also expanding our presence into the high-end segment that includes limousines and other luxury cars as taxis,” added Vij. He claimed that Carzonrent is the largest company in terms of high-end cars and owns a fleet of 300 or so.
The overall fleet of the company is pegged at around 6,500 and it employs 725 people. The growth of the company has attracted three investors till date – SIDBI, WestBridge and BTS – who have pumped into the company a total of Rs 100 crore.
“We don’t need funding for our immediate business plans. Although our existing investors are not exiting, there are PE investors who want to invest in us,” said Vij.
He also added that he has not frozen a particular route to give an exit to existing investors and one of the future options could be an IPO. However, there are no such plans in the near term. Vij currently owns 65 per cent stake in the company.
The overall car rental industry in India is estimated to be worth around Rs 15,000 crore and is growing at around 12-15 per cent a year. While some of the larger radio cab firms are PE-backed, a number of new-generation online cab booking aggregator platforms have raised angel funding or venture capital investment in the past one year.
(Edited by Sanghamitra Mandal)