Indian P2P Car Share Startup Drivezy Raises $10 Million, Accepts Bitcoin & Announces ICO
Drivezy, a Y-Combinator-backed startup previously called JustRide, has just raised $10 million in a part-equity and part-debt round of fundraising. The stage has also started accepting bitcoin for payments to capitalize on the growing popularity of their cryptocurrency from the country.
The 10 fundraising round sees $5 million in equity investments from American and Japanese investors such as Das Capital, IT Farm and Axan Partners. A further $5 million debt comes from a consortium of important Indian private banks and financiers.
Drivezy launched previously in 2017 and today has a fleet of approximately 1,000 cars and 300 bicycles across four Indian towns. The peer-to-peer automobile sharing platform is now accepting bitcoin as a way of payment on its own website and cellular applications, via a partnership with Indian bitcoin exchange Unocoin — the best-funded bitcoin startup in the country.
Co-founder and CEO Ashwarya Singh stated:
With the growing popularity of Bitcoin in India, we feel that this is the right time to open ourselves up to alternative means in the sharing economy.
Further, the system has already “seen 150-160 transactions” through bitcoin, Singh told the Economic Times.
Further, Drivezy will even launch a private ICO in Japan with the aid of Japanese FinTech AnyPay, an investor at the startup. The private ICO, just open to accredited investors subject to regulations, will empower Drivezy’s investors to purchase cryptographic tokens to acquire a share of revenues generated by rental revenue on the stage.
According to Drivezy’s ICO portalsite, investors will buy ‘RentalCoins’ to ease investment into a fleet of shared vehicles run by the stage. 95% of the subsequent revenue from the rentals goes to investors, with all the remaining 5% to Drivezy in the first week of each month. 12.6 million tokens are up for sale over 2 private offerings with a unit price of 0.00141 ETH.
CEO Ashwarya Singh added:
This ICO is part of our vision to leverage the power of the blockchain to build an open, secure and transparent technology to globalize the Indian car sharing marketplace. Rental coins can potentially create almost 10 lakh (1 million) micro-entrepreneurs who can supplement their household income by renting their assets.