PumPumPum, a startup that gives used cars on lease, has secured Rs 5.5 crore in a funding round led by Inflection Point Ventures. Lets Venture & Agility Ventures were other investors in the round.
The company will use the money for consumer awareness, technology development, brand building and expansion. “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. We are committed to offer a hassle-free smart car experience with zero down-payments, zero maintenance charges and zero insurance premiums,” said Tarun Lawadia, founder and chief executive officer of PumPumPum.
The company’s monthly subscription ranges between Rs 10,000 to Rs 1 lakh “We are confident that the capital infusion will help us in category disruption and strengthen our product development, marketing and expansion plans,” said Lawadia.
Average ownership of firsthand used cars in India is approximately 24-30 months. Leasing a car for a year is affordable and hassle-free, said the company, which was conceptualized by Lawadia and Sameer Kalra.
“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,” said Vinay Bansal, Founder & CEO, IPV.
The startup has strategic tie-ups with financial Partners such as ICICI Bank, IDFC Bank, Canara Bank & Kogta Finance; strategic sourcing partners such as Cars24, OLX, Avis, SMAS, LeasePlan, VW Das Wels Auto, Renault Select and corporate tie-ups with Xceedance, Snapdeal, People Strong, Bira, Ashiana Group and Chaayos.
Kalra, co-Founder & Chief Growth Officer, said: “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.”