An autorickshaw pooling startup from city of Indore – ‘TeleRickshaw‘, which is essenially an aggregator service provider on the line of carpooling is set to raise $1-2 million in its first round of fundraising from three-four private equity players reports Economics Times today.
The funds will be used for upgrading technology and expansion to 10 cities, including Delhi and Bengaluru.
Founded in 2013 by Karanvir Singh, TeleRickshaw is a startup that aims to initiate the formalization and standardisation of a highly fragmented and unorganized Auto Rickshaw industry in India to ensure safety, transparency, affordability and availability in sustainable urban public transport mix.
The startup provides doorto-door connectivity through its “auto-on-call” service that it says is safe because it has enrolled the autorickshaw drivers after seeking all details.Started with 50 autorickshaws last year, the company has increased its fleet to 5,000. It will soon enter Ujjain and Bhopal. TeleRickshaw provides GPS and panic button in its autorickshaws and the revenue model is kept simple, with the company charging a commission per journey.
TeleRickshaw has been supported by Madhya Pradesh Government under the public-private partnership or PPP model.
Notably, app-based taxi service providers such as Ola and Uber both are already testing auto-booking service in Delhi.
TeleRickshaw has managed to build a fleet of about 5000 Auto Rickshaws to enable their optimal role in the urban transport system by channelizing greater door to destination connectivity and enhanced feeder services.