InDrive, a ride-hail company that operates in more than 45 countries, has raised $150 million by initiating a debt instrument with repayment linked to the company’s performance. This unique debt round gives the ride-hailing platform flexibility on repayments based on the profits generated over time.
According to Dmitri Sedov, the Chief Financial Officer, this latest round of funding is expected to power the marketing activities and the development of new services. The lead participant in the funding was General Catalyst Group Management LLC.
Over the last year, the company has expanded into delivery, cargo transportation, and handyman services that can be booked through the app.
“InDrive is in a strong financial position and has a choice of financing instruments that best suit its requirements,” Chief executive Arsen Tomsky said to Forbes. “I believe that this financing reflects General Catalyst’s conviction in our ability to continue to successfully expand into new communities and new business verticals in the coming years.”
InDrive, which increased gross revenue by 88% in 2022, expects to become cash flow positive this year.
“Given the down market, we had to choose whether to offer equity or something that allows us not to put a price tag on the company. Since we didn’t desperately need the money, we decided to raise this kind of funding.” Dmitri Sedov said in an interview with Bloomberg.
The current macroeconomic conditions that have plagued the tech ecosystem have seen several big tech companies let staff go and record losses. It is not unusual to see companies develop innovative ways to maximize profits.
InDrive is very popular in the emerging market and is the world’s second most downloaded ride-hailing app. The mobile app analytics company Data.ai. disclosed that the app was downloaded 61.8 million times in 2022, up 45% from the previous year.
About InDrive.
InDrive is a Russian-founded ride-hailing company founded in the Siberian city of Yakutsk.
Aaron Tomsky previously told Rest of World that inDrive is now an American-based company in a bid to distance itself from Russia since the invasion of Ukraine by Russia. “Since 2018, we are an American company supported by top American investment funds,” he said at the time.
Formerly known as InDriver, the ride-hailing app allows passengers and drivers to negotiate transport fares. It has been funded by four investors, with General Catalyst and Insight partners being its most recent investors.
About 60% of the company’s business comes from Latin America, with Mexico, Kazakhstan, Brazil, Colombia and Egypt as its biggest markets. Last year it extended its business to Australia, where it began functioning like in other countries.
Read More; inDriver e-Hailing App Allows Passengers and Drivers to Bargain and Agree on a Fare
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