Dream Road Technologies Pvt Ltd, which runs used-car leasing startup PumPumPum, on Thursday said it has secured equity funding of $2 million (Rs 15.4 crore) from LC Nueva Investment Partners, Founder’s room capital, Lets Venture, Nazaara founder Manish Agarwal and Uday Sodhi, ex-Business Head Sony Liv.
The Gurugram-based firm plans to use the fresh capital to further grow its platform.
PumPumPum, founded in 2018, offers a mobility solution for customers who have been compromising on their vehicle ownership choices.
The company follows an asset-light model. It doesn’t own fleets but works with multiple micro-NBFCs (non-banking financial companies) who purchase used cars and lease them to the firm which will be subleased to customers.
“Breaking down our business model, we are an IoT-enabled smart used car platform that offers a monthly subscription service at a considerably reasonable cost bundled with an end-end warranty and servicing facilities for all our customers,” said Tarun Lawadia, Founder and CEO, PumPumPum told VCCircle.
He said that in India the penetration of leasing is not even 2% of the total automobile sales, whereas globally this number is close to 40% of the automobile sales, especially in the US, Australia and European markets.
“Until now the lease market in India has only focused on new cars because of which the expected growth of the car leasing industry has not seen unprecedented growth. Leasing penetration in the country can now see continuous growth because of both used cars and EVs. Wherein, EV’s growth will be supported directly through the leasing industry,” added Lawadia.
“In the last few years we have seen PumPumPum grow exponentially. With its proven track and tech-driven innovative used car leasing model, we strongly believe that Tarun and Sameer are building an ecosystem that is promising convenience while also allowing their customers to drive and upgrade vehicles with zero hassles,” said Sohil Chand, Founding Partner and CIO, LC Nueva Investment Partners.
In October last, PumPumPum raised an undisclosed amount in a bridge funding round from LC Nueva AIF.
In July 2020, the startup raised Rs 2.2 crore ($292,800) in a seed funding round. The capital was raised from the Early Adapters Syndicate (EaSyndicate) of LetsVenture, a platform for angel investing and startup fundraising.