Secures Seed Funding From Angel Investor

Online Car rental booking portal has received Rs. 25 Lakh (US$ 50 Thousand) from Angel Investor Anand R P.

Though Anand is the  investment director at Squadron Capital, he has made the contribution in his personal capacity. The company was started 2 years ago & the funds will now be used “for expanding operations and meeting working capital requirements” shared co-founder Ananthakrishnan. The founders are confident of the firm’s success & are anticipating a series a round of funding to secure around US$ 2 Million.

The portal currently operates on similar platform as Meaning, the company does not operate its own fleet. Rather it operates as a car rental aggregator  bringing together taxi operators and retail customers on one platform. Similar to olacabs, the company demands 20% upfront payment & in some cases even 100%. Many customers might find the minimum valid transaction of Rs. 500 to be inconvenient, but it seems the company only wants to target higher-paying individuals & corporates.

With such a game-plan it will have to compete directly not just with new players like &, but old timers like EasyCabs & Meru Cabs too. The funding may cover the immediate working capital needs, but it will have to prove itself in order to secure the US$ 2 Million required for customer acquisition, hiring, improving the technology and marketing, shares Ananthakrishnan. Interestingly, managed a but much better packet at USD 1 Million!.

Technology is surely helping commuters, but it all depends on the innovative techniques that the companies adopt to decide who stays & who is asked to go. Additionally, such companies will have to expand their scope of assistance to the travel & tourism websites in order to secure clients. After all mutual co-operation will surely enhance both the business.

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