FirstU, a startup providing a subscription-based service for vehicle maintenance, has raised an undisclosed amount of money in a seed funding round from a clutch of investors, including early-stage investors India Quotient and First Cheque.
Other investors that participated in the seed round include Farooq Adam, co-founder of online fashion shopping platform Fynd, and other angel investors, FirstU said in a statement.
Autozo Technologies Pvt. Ltd, which runs FirstU, will use the capital to hire staff as well strengthen its product offering. FirstU co-founder and chief executive Muhammed Rizwan said the startup would address all the needs and concerns of a car owner through its single-window subscription.
“The relationship between vehicle and owner is still filled with hassles, unaffordability and lacks transparency,” Rizwan said.
Separately, India Quotient partner Madhukar Sinha said the firm was confident in its investment because of FirstU’s transparency and consumer-focused approach on quality and affordability.
“To ensure quality and transparency, customers will always have direct access to advisers during service,” said FirstU co-founder and chief operating officer Anwar Sadad.
According to the Bengaluru-based company, the subscription covers periodic services, deep interior washes, unlimited roadside assistance, and unlimited repair assistance. FirstU says it has partnered with brands for sourcing parts and providing customer services to ensure standardised quality.
It is not the only startup in the auto maintenance and servicing segment to raise money or attract strategic interest in recent years. In June this year, mobile application-based CleanseCar Washing and Repair Services Pvt. Ltd acquired Carnanny Solutions Pvt. Ltd in a stock deal.
In 2018, Cleanse Car had raised $150,000 (around Rs 1.08 crore then) in seed funding from angel investor Dhianu Das.
Similarly, in December 2017, the Gurugram-based automobile servicing platform GoMechanic said it would acquire car servicing and repair startup VOW CarClinic. In December 2016, GoMechanic raised $250,000 (nearly Rs 1.68 crore then) from seed investment and innovation platform Venture Catalysts.
In October 2017, two-wheeler servicing startup Let’s Service secured pre-Series A funding from aerospace components maker Aequs Group, while in September, after-sales car service provider Pitstop raised $1 million (Rs 6.5 crore) in a pre-Series A round from Blume Ventures, Singapore-based Goldbell Group, and a group of angel investors.