Namma Yatri raises $11 mn from Google, Blume Ventures at $55 mn valuation

livemint.com:

₹92 crore ($11 million) in a pre-Series A funding round—that gave the company a post money valuation of $55 million—led by early-stage investors such as Blume Ventures, and Antler. Google also participated in the round. The latest fundraise marks the company's first external capital raise since its inception in November 2022.

Shan MS, chief growth officer of Namma Yatri's parent company Justpay, told Mint after announcing the fundraise that “it was raised with the aim of putting minimal pressure on the company, especially as it builds on the no-commission model, which no other ride-hailing player is doing at the moment.". “We are clear since Day 1 that we do not want to build yet another ride-hailing app on the back of deep discounts. The latest investment will help us keep cash burn in control and give us sufficient time to master the no-commission model," Shan explained.

The funding is expected to help Namma Yatri expand its auto and cab services to more cities, the firm said in a statement announcing the fundraise on Tuesday. Mint had also reported about the Bengaluru-based ride-hailing firm’s fundraising plans and its ambition to touch tier-2 and tier-3 towns and cities, in May. The company is now working to maximise earnings for its driver partners.

“Expansion is at the top of our minds. The idea is to enable convenience for customers and maximum earnings for drivers," Shan had told Mint earlier, while noting that Namma Yatri was trying to solve the pain points in the ride hailing business with its open-network model. The company plans to strengthen its presence in more than 15 tier-2 cities in south India, such as Mangalore, Kottayam, Madurai and Salem, among others, over the next few months, Shan had added.