Indore-based auto aggregator, TeleRickshaw is in talks with 3-4 private equity players to raise $1-2 million for its first round of fundraising. The capital will be used to upgrade technology and to expand its services to 10 more cities including Delhi and Bengaluru. As per an ET report, the deal is expected to be closed in the coming 10 days.
Started with 50 autorickshaws in 2014, the company has now expanded to 5000, and is set to start its service in Bhopal and Ujjain. To book a rickshaw, customers can log on to the company’s website, and mentions their times of journey, pick up and drop location. Once the customer submitted his details, the driver who accepts the request first is redirected to customer with fare of the trip and approximate time. A confirmation text is sent once the customer agrees. Currently, the service is only available in Indore.
The startup has also installed a GPS Panic Button in rickshaws in case of security.
Ola had introduced auto booking service in November 2014, started with Bengaluru, and then expanded to Delhi, Chennai, Hyderabad, Pune and Ahmedabad. Last month, Uber jumped into this segment of running autos in India, to strengthen its hold in the Indian market. Jugnoo is a Punjab-based startup that is also offering auto booking service in Chandigarh Tricity, Ludhiana and Amritsar (and launching publicly in Jaipur soon). Now it will be interesting to wait and watch out for who will be the leader in this segment.Category Investments Startups