Inter-city cab rental platform MyTaxiIndia Pvt. Ltd has raised an undisclosed amount from a Dubai, UAE-based investor to expand its operations, a top company executive told VCCircle.
MyTaxiIndia, which is currently present in 200 cities, is looking to roll out its offerings in the North-East, as well as in tier I and tier II cities in Bihar, Uttar Pradesh, Madhya Pradesh and Chhattisgarh.
Anshuman Mihir, the founder, said the company has made money from 23 cities, and expects to be profitable in 40 more in 2017-18. âThe seven sister states have huge potential with a large population base and scarcity of facilities such as taxi services,â he said.
Mihir said the money pumped in by ZGC Global, an investor and incubator for young innovative enterprises, will go into servicing MyTaxiIndiaâs expansion plans. He, however, did not divulge the financial details, citing confidentiality.
ZGC has business interests in real estate, hospitality and investment services, besides imports and exports. âMyTaxiIndiaâs craving for success and innovation will surely create a better future for the company and revolutionise the transportation industry,â said Zaid Khan, chief strategy officer, ZGC Global.
Mihir said the Dubai-based company will also participate in a Series A funding round, which will be finalised in the next four months. âWe are discussing the valuation with several venture capital firms, besides ZGC Global. We would be raising up to $5 million.â
In July 2016, MyTaxiIndia had raised $1 million (around Rs 6.65 crore) in bridge funding from existing investor Nihon Kotsu Co, a leading taxi rental company in Japan. The firm was also part of Green House Venturesâ 12-month accelerator programme in June 2015, where it received seed funding of $100,000.
The company was co-founded by Mihir, Mohit Rajpal and Satyakam Rahul in December 2013. It offers inter-city taxi rental solutions and has a fleet of 20,000 taxis operating in 10,000 one-way routes. Last year, it had tied up with SpiceJet to offer airport drop facilities for passengers who would book a taxi at the time of buying an air-ticket.
It had also launched its mobile app on the iOS and Android platforms to allow customers to check availability of taxis in real time, provide instant confirmation with driver details and navigate the ride on the map.
While a few funded ventures such as Meru, TaxiGuide and Savaari, AHA Taxis and Roder offer booking platforms for outstation travel, the market still remains largely unorganised, dominated by individual taxi operators.
Other firms that are trying to disrupt the inter-city road travel market include Naspers-owned ibiboâs Ryde, Rocket Internetâs Tripda and BlaBlaCar.
Like this report? Sign up for our daily newsletter to get our top reports.