Dream Road Technologies Pvt Ltd, which runs used-car leasing startup PumPumPum, has raised $2 million (Rs 15.4 crore) in equity funding round from LC Nueva Investment Partners, Lets Venture, Nazaara’s founder Manish Agarwal, Founder’s Room Capital, and Uday Sodhi, ex-Business Head of Sony Liv.
The startup plans to use the funds to further develop its platform.
The Gurugram-based PumPumPum was founded in 2018 by Sameer Kalra and Tarun Lawadia, It offers mobility options to customers who are compromising on their car ownership options through its IoT-enabled used-car subscription and leasing platform.
In a first-of-its-kind business initiative, the startup said that it has registered 1000 per cent growth in the auto segment in FY 2021-22.
“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.
“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”, he added.
Tarun said leasing penetration in India is not even 2% of total automobile sales, while globally the number is close to 40% of automobile sales, especially in the US, Australia and European markets.
“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.
Currently operating in Bengaluru and Delhi-NCR, it plans to expand to over 55 cities across the country by leveraging its partner network.
In October 2021, PumPumPum had raised undisclosed amount in bridge funding from LC Nueva AIF, an India domiciled Category II AIF Fund, where LC Nueva Investment Partners LLP is the Investment Manager.
Pumpumpum is empowering millennials with a smart car subscription model. They provide monthly subscription of pre-owned cars at affordable rates. User can select a car from a pool of certified pre-owned cars, without worrying about the down payment, quality, condition & price of the car. It’s a new way forward “CAR AS A SERVICE” ensuring flexibility, affordability & zero liability.