Gurugram-based shared mobility platform Revv, run by PrimeMover Technologies Pvt. Ltd, is merging with the Jaipur-based CarDekho Group as part of a deal that will let its venture capital backers make an exit.
CarDekho said Friday it is acquiring a majority ownership in Revv but didn’t disclose any financial terms. People familiar with the matter said CarDekho is likely to own 80-90% of Revv and that it was a cash deal.
Revv’s current investors include South Korean automaker Hyundai Motor Co and its affiliate Kia Motors Corp. It had also raised funding from a private equity fund managed by Edelweiss and venture capital firm Beenext.
CarDekho Group operates automobile e-marketplace CarDekho, insurtech platform InsuranceDekho, lending-tech platform Rupyy, two-wheeler platform BikeDekho and ZigWheels. It is backed by marquee investors such as Peak XV Partners (formerly Sequoia India), Hillhouse Capital, CapitalG, Ratan Tata Trust, and Leapfrog.
Founded in 2015 by former McKinsey executives Anupam Agarwal and Karan Jain, Revv offers shared mobility options including car rentals in multiple cities such as Bengaluru, Hyderabad, Mumbai.
Since inception, Revv has raised nearly $29 million in equity funding, as per VCCEdge, the data research arm of VCCircle. It was last valued around $130 million in 2020, VCCircle reported previously.
In 2020, the company reportedly secured around Rs 70 crore ($9.8 million) in a Series C round of funding with Hyundai putting in the bulk of the capital while Kia came in as the new investor.
Revv raised Rs 100 crore ($14.3 million) in the Series B round led by Hyundai in 2018. An Edelweiss fund and Beenext also participated in the round while Dream Incubator, Sunjay Kapoor of Sona BLW and Telama Investment came in as new investors in the round. Previously, Revv picked up $9 million (Rs. 60.9 crore) in debt and equity in 2016. The Series A round was led by Edelweiss Private Equity.
CarDekho said the acquisition falls in line with its strategy of creating a complete automobile ecosystem for customers.
“The merger with Revv allows us to offer shared mobility services addressing the evolving needs of Gen-Z customers,” said Amit Jain, co-founder and chief executive of CarDekho Group. “Through strategic integration of technology, we are not just evolving our services but also ensuring more seamless operations.”
Founded in 2008 by siblings Amit Jain and Anurag Jain, CarDekho started as a car discovery platform for both new and old four-wheelers. Through the years, it has acquired companies such as Gaadi.com, ZigWheels, Connecto and Carbiqi among others as it expanded its portfolio.
Revv is CarDekho’s first acquisition since 2019. In the last few years, it has started its own brands like InsuranceDekho and Rupyy in recent years.
Headquartered in Jaipur, CarDekho joined the coveted ‘unicorn’ club in October 2021 after raising $250 million in its Series E round, led by LeapFrog Investments.
Last month, CarDekho said its revenue crossed Rs 2,000 crore in FY23, despite the company shutting down its used-car business and consumer-to-dealer businesses. It grew its revenue from operations by nearly 46% to Rs 2,331 crore on a consolidated basis in FY23, while widening its consolidated net loss by 5% to about Rs 562 crore.