ET Bureau NEW DELHI: Bike ride-hailing app Baxi has raised Rs 10 crore in funding from a number of high-profile investors, making this one of the largest seed rounds raised by an Indian startup, still in stealth mode, in recent times.
The startup, which will go live on Tuesday will provide two-wheeler taxi services in Gurgaon, and has received the necessary permits from the government of Haryana. It will also roll out its services in the towns of Faridabad, Sonepat and Bahadurgarh.
A slew of high net worth individuals, including, Manish Kheterpal, managing partner of private equity firm WaterBridge Ventures, Alok Mittal, former India head of venture capital firm Canaan Partners and founder of technology startup Indifi Technologies, and Puneet Dalmia, managing director of cement major Dalmia Bharat Group, have invested in the startup.
“There is a huge market opportunity, just in last-mile transportation. The value proposition, compared to existing alternatives, is amazing. The (Baxi) strategy includes full access in every city they launch, with a five-minute access,” said Kheterpal.
The seed round is among the largest raised by a startup, which is yet to formally launch its services, and comes at a time when early-stage investments in the country continues to break new ground.
The year 2015 has seen 252 early-stage deals, valued at almost $590 million, a 125% increase in deal value over last year, according to data collated by investment tracking firm Venture Intelligence.
The Baxi model is similar to GrabBike, the motorcycle taxi service launched by GrabTaxi, the Southeast Asia-based taxi-hailing app, which is also competing with global leader Uber.
The 11 month-old startup, which will operate under the Motor Vehicles Act, is the first entrepreneurial venture for founders Ashutosh Johri and Manu Rana, both of IIT Delhi. Prior to starting Baxi, Johri led IT services firm Mara-Ison Technologies, while Rana served as chief product officer at IgniteWorld, which was formerly branded as Bharti SoftBank.
“We raised a big round because we’re looking to consolidate our position right from the outset. In such instances, one can’t afford to start small,” Johri said. The startup will launch its services with 23 bikes, but plans to ramp up its fleet to 150 by January 2016.
In a move to ensure that there are no regulatory fallouts, the government has amended the contract carriage rules, allowing the startup to ply two-wheelers as commercial carriage vehicles, and thereby charging fees.
“There were no rules for two-wheelers under the Motor Vehicles Act, and therefore, we had to get it modified,” said Johri.
Baxi will also be providing loan processing and insurance for its riders. Passengers, too, will be covered under its insurance plans. The app also has built-in safety features, relating to tracking of riders and speed.
The startup, which will go live on Tuesday will provide two-wheeler taxi services in Gurgaon, and has received the necessary permits from the government of Haryana. It will also roll out its services in the towns of Faridabad, Sonepat and Bahadurgarh.
A slew of high net worth individuals, including, Manish Kheterpal, managing partner of private equity firm WaterBridge Ventures, Alok Mittal, former India head of venture capital firm Canaan Partners and founder of technology startup Indifi Technologies, and Puneet Dalmia, managing director of cement major Dalmia Bharat Group, have invested in the startup.
“There is a huge market opportunity, just in last-mile transportation. The value proposition, compared to existing alternatives, is amazing. The (Baxi) strategy includes full access in every city they launch, with a five-minute access,” said Kheterpal.
The seed round is among the largest raised by a startup, which is yet to formally launch its services, and comes at a time when early-stage investments in the country continues to break new ground.
The year 2015 has seen 252 early-stage deals, valued at almost $590 million, a 125% increase in deal value over last year, according to data collated by investment tracking firm Venture Intelligence.
The Baxi model is similar to GrabBike, the motorcycle taxi service launched by GrabTaxi, the Southeast Asia-based taxi-hailing app, which is also competing with global leader Uber.
The 11 month-old startup, which will operate under the Motor Vehicles Act, is the first entrepreneurial venture for founders Ashutosh Johri and Manu Rana, both of IIT Delhi. Prior to starting Baxi, Johri led IT services firm Mara-Ison Technologies, while Rana served as chief product officer at IgniteWorld, which was formerly branded as Bharti SoftBank.
“We raised a big round because we’re looking to consolidate our position right from the outset. In such instances, one can’t afford to start small,” Johri said. The startup will launch its services with 23 bikes, but plans to ramp up its fleet to 150 by January 2016.
In a move to ensure that there are no regulatory fallouts, the government has amended the contract carriage rules, allowing the startup to ply two-wheelers as commercial carriage vehicles, and thereby charging fees.
“There were no rules for two-wheelers under the Motor Vehicles Act, and therefore, we had to get it modified,” said Johri.
Baxi will also be providing loan processing and insurance for its riders. Passengers, too, will be covered under its insurance plans. The app also has built-in safety features, relating to tracking of riders and speed.
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