Indore-based InstaCar, a marketplace for outstation taxi rental, has received $1 million (Rs 6.65 crore) in seed round of funding from Hongkong-based Swastika Company Pvt Ltd, Ishan Vyas, co-founder of InstaCar told.
This makes InstaCar the first startup in Madhya Pradesh to receive foreign direct investment (FDI). Following a rigorous 15-point quality scale for standardising outstation taxis, InstaCar is solving the problem of getting cars for outstation trips. The startup has so far onboarded over 500 cars in Madhya Pradesh itself.
The two-months-old company aims to use the funds for scaling up operations, marketing, and brand building.
InstaCar Technologies Pvt. Ltd, which runs InstaCar, was founded in August by Vyas, Anurag Gupta and Priyanshi Choubey. Vyas and Choubey are both second time entrepreneurs and had earlier co-founded Aspricot, a web and software development services firm. Gupta, an IIM Kolkata alumnus, runs a chain of unisex salons – ‘Shear Genius.’
InstaCar provides inter-city car rentals solutions to commuters, offering one-way fare ride to commuters for outstation trips up to 400kms. The startup claims that their USP is that they don’t just provide any car, but offer choice of car make, model, luggage carrier and other options at the time of the booking to commuters. The pricing of the trip varies from car to car and is also based on the services provided by the driver.
“We provide on-the-go snacks, water bottles, tissue papers, among others, to ensure that the customer feels comfortable,” added Choubey.
Besides InstaCar, Swastika has invested in Bangalore-based Quarto India Internet Pvt. Ltd which operates curated online marketplace for used books called AbeRuk; Gurgaon-based on-demand concierge startup Qlivery; Noida-based restaurant deals startup Pocketin; and Gurgaon-based beauty and wellness startup Stylofie.
InstaCar plans to raise another round of investment in the next six months.