Namma Yatri Funding: Google-Backed Ride-Hailing Startup Raises Rs 39.75 Crore in Pre-Series A Extension

Bengaluru-based ride-hailing startup Namma Yatri has raised Rs 39.75 crore (approximately $4.4 million) in a pre-Series A extension round, marking a significant vote of confidence in the Google-backed company’s zero-commission mobility model. Juspay founder Vimal Kumar led the round with a personal commitment of Rs 18 crore, while existing investors Blume Ventures and Antler also participated alongside angel investors. The fresh capital signals growing investor appetite for community-driven alternatives in India’s ride-hailing market.

Juspay’s Vimal Kumar Leads the Funding Round with Rs 18 Crore

The bulk of this Namma Yatri funding came from Vimal Kumar, the founder of payments infrastructure company Juspay, who invested Rs 18 crore ($2 million) in the round. Blume Ventures followed with Rs 9 crore, reinforcing its long-standing commitment to Moving Tech, the parent company that operates Namma Yatri and its family of regional ride-hailing apps. Navin Dalmia contributed Rs 4 crore, while the remaining capital was pooled from Plutus Investment Trust, Antler, Phi Investment Partners, and several angel investors.

According to filings with the Registrar of Companies (RoC), Moving Tech’s board approved the issuance of 1.26 crore compulsorily convertible preference shares (CCPS) at Rs 31.57 per share to raise the Rs 39.75 crore. Following the allotment, Vimal Kumar will hold a 13.91% stake in Moving Tech, Blume Ventures will control 11%, and Juspay—the company Kumar founded—will retain approximately 29.45% ownership.

Inside Namma Yatri’s Zero-Commission Ride-Hailing Model

Namma Yatri is not your typical ride-hailing app. Launched by Moving Tech in Bengaluru in 2022, the platform operates on a zero-commission model, meaning drivers keep every rupee of the fare passengers pay. Instead of skimming a percentage off each trip—the standard practice at Uber and Ola—Namma Yatri charges drivers a small daily or weekly subscription fee. That structural difference has turned heads among regulators, drivers, and investors alike.

The platform connects users directly with auto-rickshaw and cab drivers across cities including Bengaluru, Delhi-NCR, and Chennai. It is fully open-source, publishes open data metrics, and operates as part of the ONDC Network—the Indian government’s initiative to democratize digital commerce. Moving Tech has also expanded the concept through regional brands such as Yatri Sathi, Yatri, and Mana Yatri to serve riders in other states. India’s consumer tech space has seen no shortage of startups that scaled fast but couldn’t sustain—Hey Bob’s shutdown is a reminder that unit economics matter more than hype, something Namma Yatri’s subscription model is designed to address.

Revenue Growth Alongside Mounting Losses for Google-Backed Namma Yatri

The Google-backed Namma Yatri posted Rs 19.8 crore in operating revenue for the fiscal year ending March 2025, alongside a loss of Rs 51.25 crore. The gap between revenue and losses is common for early-stage mobility startups burning cash to acquire drivers and riders, but it highlights the urgency of reaching a breakeven trajectory. The pre-Series A extension gives the company runway to keep scaling without immediate pressure to halt city-level expansion.

This latest Namma Yatri funding round follows the $11 million the company raised in July 2024 from Blume Ventures, Antler, and Google. That earlier raise helped the platform push beyond Bengaluru and build out its technology stack. With Rs 39.75 crore now secured, Moving Tech is expected to deepen its presence in existing markets and explore entry into additional Tier 1 and Tier 2 cities.

India’s Ride-Hailing Market Heats Up as Uber and Rapido Raise Big Rounds

The timing of this pre-Series A extension is noteworthy. India’s ride-hailing market is in the middle of a fierce capital war. Uber’s India arm received Rs 3,000 crore from its global parent entity to compete more aggressively on pricing and driver incentives. Rapido, the bike-taxi turned multi-modal platform, secured Rs 125 crore from Nexus Venture Partners in June 2025. Against these deep-pocketed rivals, Namma Yatri’s community-led and driver-first approach represents a fundamentally different bet—one that prioritizes driver earnings and transparent pricing over massive discounting.

Industry observers say the Indian mobility market is large enough to support multiple models. Much like the intensifying food delivery battle between Flipkart, Zomato, and Swiggy, the ride-hailing space is shaping up as a multi-player contest where differentiated models can coexist. The zero-commission approach championed by Namma Yatri appeals to cost-conscious riders and drivers frustrated with commission-heavy platforms. If Moving Tech can convert that goodwill into geographic density and retention, the startup could carve out a defensible niche.

What the Fresh Capital Means for Namma Yatri’s Expansion Plans

With the latest round closed, Namma Yatri plans to channel the fresh capital into three areas: expanding to new cities, strengthening its technology infrastructure, and building deeper partnerships within the ONDC ecosystem. The platform has completed millions of rides since its 2022 launch and generated significant driver earnings through its subscription-based model. The open-source nature of the ride-hailing platform also makes it easier for regional partners and civic bodies to adapt the technology for local needs.

For now, the Google-backed startup is focused on proving that a fair, transparent, and community-driven model can compete with venture-fueled giants in one of the world’s fastest-growing ride-hailing markets. If the early traction is anything to go by, investors like Vimal Kumar and Blume Ventures are clearly betting it can.

For deeper insights into India’s fastest-growing startups and the latest funding announcements, visit KnowStartup for comprehensive coverage of the startup ecosystem.

Author

Sachin

Sachin Sidharth is a Digital Marketing professional with a master’s degree in Digital Marketing from Coventry University, UK. He has 10+ years of blogging and online marketing experience. He currently heads Digital Acquisition for a leading London-based Fintech firm. At KnowStartup.com He focuses on writing Digital Marketing guides and manages...

Sachin Sidharth is a Digital Marketing professional with a master’s degree in Digital Marketing from Coventry University, UK. He has 10+ years of blogging and online marketing experience. He currently heads Digital Acquisition for a leading London-based Fintech firm. At KnowStartup.com He focuses on writing Digital Marketing guides and manages KnowStartup's Digital Agency rankings of firms across multiple cities in India. You can reach him on Linkedin.

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