Funding Alert

IndusGo, Car Rental Startup Receives $12.1 Mn Funding to Expand Fleet with 1,000 Vehicles

• ByStartupStory     |    March 22, 2023

IndusGo, a car rental platform based in India, has received a funding of INR 100 Crore ($12.1 million) from its parent company, Indus Motors. The investment will be used to expand its existing fleet of 489 cars by adding 1,000 more cars, as well as to improve its technology and customer service by hiring new talent. Since its inception in 2018, the startup has raised INR 120 Crore. IndusGo operates as a subscription-based car rental platform, enabling customers to book cars through its website and mobile application.

IndusGo’s founder Afdhel AW has expressed excitement over the company’s expansion into the Hyderabad and Bengaluru markets, providing customers with a hassle-free and convenient means to explore these dynamic cities. The company’s primary focus is on delivering exceptional customer service, and it intends to gradually expand its services throughout India. Indus Motors, the parent company of IndusGo, states that it manages over 6,000 employees, 75+ workshops, and 100+ sales outlets across India, with an annual turnover of more than INR 2,500 Crore in FY22.

IndusGo’s website reveals that it presently provides car rental services in several Indian cities, including Cochin, Bengaluru, Hyderabad, Trivandrum, and Chennai. The company remains dedicated to providing safe, budget-friendly, and stress-free self-drive car rental services that cater to the requirements of its customers. Afdhel AW emphasized that IndusGo is poised to maintain its upward trajectory and establish itself as a prominent player in the industry by offering a seamless, digitally-enabled experience that addresses the challenges associated with self-drive car rentals’ accessibility.

IndusGo faces stiff competition from other drive-rental service providers like ZoomCar, Revv, MyChoize, Myles, and DriveEasy in the Indian market. As per the reports, the car rental industry in India was valued at more than $1 billion in 2019 and is expected to expand at a CAGR of 9.38%, becoming a $2 billion market by 2026.

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