- PumPumPum will infuse the funding in consumer awareness initiatives, technology development, and brand presence expansion.
- With this, Inflection Point Ventures also plans to invest Rs 155 crore this year across 60 startups.
- Investors LetsVenture and Agility Ventures also participated in the funding round.
Gurugram-based PumPumPum, which leases used cars in the corporate and retail segment, has raised Rs 5.5 crore ($735K) as part of its pre-Series A funding round led by Inflection Point Ventures (IPV), along with the participation from LetsVenture and Agility Ventures.
PumPumPum will infuse the raised capital in consumer awareness initiatives, technology development, and brand presence expansion across the country, the statement said.
Prior to this round, PumPumPum had raised Rs 2 crore in a debt financing round in September 2020, co-led by ICICI Bank, Canara Bank, and Kogta Financial India Ltd. To date, The startup has raised over $1 million in a mix of seed, venture, and debt funding.
Other investors such as EaSyndicate, Shobhit Shukla (Co-Founder of Near), Rahul Agarwal (CFO of Near), Ritesh Malik (Innov8 Coworking), and Pallav Pandey (Founder of Broex.in), also invested in the startup.
This is IPV's 11th investment in the startup ecosystem in 2021 after Circus Social, Janani.ai, Prescinto, STAGE, Stylework Innovation Hub, Pencil, Vested Finance, Mindler, Siply Services, and Hobspace.
Speaking on the development, Tarun Lawadia, Founder & CEO, PumPumPum, said, “Car leasing and subscription is fast catching pace in the country and has a great future ahead. To take this niche category to newer heights, we are consistently expanding our reach along with tech disruption and high decibel consumer awareness."
He further said We are committed to offering a hassle-free smart car experience with zero down payments, zero maintenance charges, and zero insurance premiums. Ranging from monthly subscriptions of Rs 10,000 to Rs 1 lakh, PumPumPum car subscriptions are dynamic based on the duration of the subscription.
Founded in 2018 by Tarun Lawadia and Sameer Kalra, Dream Road Technologies Pvt. Ltd, which owns and operates PumPumPum, an online used car leasing startup that provides IoT-enabled pre-owned cars at an affordable and flexible subscription for short to long-term durations without any hassles of service and maintenance.
To offer seamlessly used car leasing service, it has partnered with banks --- Canara Bank, ICICI bank, Kogta Finance; supply-side partners --- OLX, Cars24, LeasePlan, Avis, SMAS; and insurance partner IFFCO Tokyo.
Vinay Bansal from Inflection Point Ventures, said, “In the 90s, owning a car was considered a big deal, but with growing disposable income of millennials, buying a car is now matter of convenience and changing them every 3 years seems to be the norm. The new age workforce mantra is to lease assets like house, consumer durables and even cars so that it keeps them detached and mobile when changing jobs or home base."
"This is the new customer segment that PumPumPum is aiming to capture and we believe its potential will explore in the coming 5 years," he added.
Commenting on the industry rise, Sameer Kalra, Co-Founder & Chief Growth Officer, PumPumPum, said, “Realising the fact that leasing by nature has the ability to solve the entire ownership related issues, we are the only company in the Used Car Leasing space to provide a car with a white number plate ensuring a sense of pride and security for our customers."
"Our unique business model offers an ownership aimed at effectively solving all consumer issues, right from pricing to quality and flexibility. We have aggressive plans to reach out to over 15 cities in the next 3 years as we are witnessing a huge demand for used car leasing from metros as well as non-metros markets," he added.
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