India: Vehicle rental startup Drivezy to go public in US or Japan

Drivezy co-founder and CEO Ashwarya Singh.

Bengaluru-based vehicle rental platform Drivezy plans to skip India and instead launch an initial public offering (IPO) in either the US or Japan, said a top company executive.

Ankur Sengupta, who heads business development for Drivezy, told Mint that the startup will look to list either at the New York Stock Exchange or Tokyo Stock Exchange.

“India is not an option for us (for an IPO) mainly because all of our current investors are from Japan and the US, and secondly India’s existing laws don’t allow loss-making companies to sell shares to the general public,” Sengupta said over the phone.

IPOs are rare among Indian startups but are now being considered as an essential exit mode for investors in several tech startups operating in the business-to-business and business-to-consumer segments. Startups such as Ola, Oyo, Freshworks and Urban Ladder are expected to go public in the next 2-3 years.

Drivezy offers operates a rental fleet of around 15,000 bikes and 4,000 cars in 11 cities. The startup has invested millions of dollars to finance the purchase of these vehicles. It now wants to reduce operational costs such as maintenance, and the cost of real estate to operate vehicle parking lots, which are leased from landowners.

Drivezy has so far raised over $40 million in equity financing from investors such as Das Capital, Y Combinator and White Unicorn Ventures. It had also raised $100 million in an asset financing deal, which is parked in a special purpose entity, Harbourfront Capital, set up in collaboration with AnyPay in November 2018.

This article was first published on livemint.com

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.