Bangalore: French based car rental service startup Drivy has secured $8.6 million round of funding from Bpifrance and Via-ID along with its existing investors, namely Alven Capital and Index Ventures, to grow beyond borders and to improve website and apps. The startup plans to acquire its competitor Buzzcar for an undisclosed amount. Last year, Drivy raised a series A round of €6 million ($8.3 million) and started international expansion by opening its first international market in Nov 2014.
Founded in 2010 by Paulin Dementhon, Drivy is not like other car startups, as it not only offers a taxi replacement service, but it also invites people to rent out cars. The startup has over 250,000 active users. From renting out the car through Drivy, each car owner earns about $1,388 every year. Ranking amongst the largest car rental firms in Europe, Drivy claims to have 20 percent growth every month.
Drivy, lets people to rent a car from any one at less cost and additionally, it offers insurance coverage. The people who use their car rarely can earn a chunk of money by putting out car on the market place. As of now, the Drivy is accessible to customers in Germany and France and the company is anticipated to expand its business to other European countries, mainly Italy, Netherlands, Spain, Germany, UK and many others. After the amalgamation with Buzzcar, the startup has 500,000 registered users and 26,000 cars on the platform. Founded by Robin Chase, the peer to peer car service firm, Buzzcar has 100,000 users with 7000 cars before the acquisition.
Talking about the advancement, Paulin Dementhon, Co-Founder and CEO of Drivy says “We don’t want to compete with traditional car rental services; we want to replace owning a car with a much more practical service. We think we can grab 3 million members and 300,000 cars in three years’ time. In order to become a leader in this consumer market, we undeniably need a high financial capacity”.