Gurugram-based startup PumPumPum, which offers used car leasing in the corporate and retail segment, on Friday announced that it has raised Rs 5.5 crore in pre-Series A round led by Inflection Point Ventures. Other investors Lets Venture and Agility Ventures also participated in the funding round.
According to the official statement, PumPumPum plans to utilise the capital for category disruption, consumer awareness, technology development, brand building and expansion.
Speaking about the new development, Tarun Lawadia, Founder and CEO, PumPumPum stated,
“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. Ranging from monthly subscriptions of Rs 10,000 to Rs 1 lakh, PumPumPum car subscriptions are dynamic based on duration of subscription. We are confident that the capital infusion will help us in category disruption and strengthen our product development, marketing and expansion plans.”
Founded by Tarun Lawadia and Sameer Kalra in 2018, PumPumPum is changing the traditional approach of car ownership by providing IoT enabled pre-owned cars at affordable and flexible subscriptions for short to long-term duration without any hassles of services and maintenance.
Commenting on the investment, Vinay Bansal, Founder and CEO, IPV said,
“In the 90s, owning a car was considered a big deal, but with growing disposable income of millennials, buying a car is now a matter of convenience and changing them every three years seems to be the norm. 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 ”
The startup has strategic tie-ups with financial partners such as ICICI Bank, IDFC Bank, Canara Bank and 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.
Addressing the rising trend of used car leasing in the country, Sameer Kalra, Co-Founder and Chief Growth Officer added,
“Realising the fact that leasing by nature has the ability to solve the entire ownership related issues, we are the only company in the Used Car Leasing space to provide a car with a white number plate ensuring a sense of pride and security for our customers. Our unique business model offers an ownership aimed at effectively solving all consumer issues, right from pricing to quality and flexibility. We have aggressive plans to reach out to over 15 cities in the next three years as we are witnessing a huge demand for used car leasing from metros as well as non-metros markets.”