Online aggregator for outstation travel startup AHA Taxis has raised an undisclosed round of angel funding from ah! Ventures. The deal was advised and syndicated by ah! Ventures and led to closure on its private equity investment platform, CLUBah.com.
The company plans to use the fund towards investing in technology, marketing and operations. The start-up is present in over 100 cities and plans to expand to another 100 cities by mid-2016.
AHA Taxis was founded in April 2015, by five former IT professionals Amit Grover, Praveen Samariya, Kunal Krishna, Kumar Arayan and a college dropout and entrepreneur Shivam Mishra.
AHA Taxis helps travellers save cost on outstation travel by charging only for actual kilometres travelled instead of taxi owners charging a return fare from customers even for one way trips, as they are not assured of passengers on return journey.
Amit Grover, Founder, AHA Taxis, said,
“Taxi sector has been developing by leaps and bounds in India, with Ola and Uber serving local travel, we felt that there is a gap in outstation travel which needs to be addressed by using technology and marketing,”
He added, “Very few of the present cab provider offers intercity ride, “AHA” being one of them. Having said that, the primary problem with a regular cab is that you get charged for the return trip too. Here, “AHA Taxis” takes the lead by providing you the taxi and charging you only for the actual kilometres travelled. We are aggregating demand and supply using website and mobile app to make it a win-win situation for all stakeholders – taxi owners, customers, society and environment.”
AHA Taxis plan to expand to newer geographies, with a focus on tier 2/3 towns, and start coverage of non-tourism sector beyond usual routes like Delhi to Jaipur, Agra, Haridwar and Chandigarh.
According to the Association of Radio Taxi India, the taxi business in the country is growing at 20 to 25 per cent a year. The organised taxi sector accounts for just four to five per cent of the industry and totals $800 million. It is expected to grow to $7 billion by 2020.
This month, ah! Ventures had also invested in Shirsa Labs, an edu-tech startup with funding of $250,000 angel capital.