Railofy Raises Additional 4 Crores in Seed Round Taking The Total To 11Crore.
With present focus on enabling passenger rush to reach their destination conveniently at the lowest possible price the funding raised will be primarily used to expand presence & growth pan-India.
Mumbai, 28 October 2020: Railofy, India’s first-ever WL & RAC protection, today announced that it has raised an additionalINR 4 Crores (INR 40 Million)in a seed roundf rom Roots Ventures, Astarc Ventures, Better Capital, and other prominent angel investors. Railofy had recently raised INR 7 Crores from Chiratae Ventures for the same round. The round also saw Anand Srinivasan, ex-Revenue Head GoAir, and Sunil Kumar, ex-Joint GM (Portals) IRCTC, join the company as mentors.
This fundraise not only validates the huge problem of Waitlist in the Indian Railways that affects 300M+ railway passenger trips annually but also the positive customer response so far since its launch in September 2020. The funding will cater to the passenger demand in the upcoming festive rush and used to strengthen the presence pan-India to enable protection cover forall train classes across 2000+ passenger trains by 2021.Currently, Railofy protection is available across both SL & AC classes for all special trains running.
Railofy’s asset-light model offers railway passengers flights close to train prices to their destination if their train ticket is not confirmed after chart preparation with the WL & RAC protection. For shorter distances, Railofy provides buses at nominal prices if the train ticket is not confirmed after chart preparation. This ensures that passengers reach their destination conveniently, in time, and at the lowest possible price, ultimately introducing predictability into the overall travel experience.
Since its launch in September 2020, Railofy has issued thousands of protections especially to migrants traveling back to metros in search of jobs, students for upcoming entrance exams, and travelers for the upcoming festive rush. By leveraging technology such as AI and Machine Learning that help determine pricing and prediction of waitlist ticket confirmation, and connecting excess demand of the railways to other transportation modes like flights & buses at very affordable prices, Railofy is ensuring that railway passengers reach their destination at the lowest price possible.
Rohan Dedhia, Vaibhav Saraf & Hrishabh Sanghvi, Founders, Railofy, said, “At Railofy, we are committed to ensuring convenient, affordable, and timely travel for every railway passenger who has been waitlisted. We are seeing a good customer response even in the current pandemic, which testifies to the intensity of the problem faced by an average Indian when his train ticket is not confirmed”
Ravinder Vashist, Partner, Roots Ventures, said,“ Waitlist traveling is a long outstanding problem for rail passengers in India at the same time they struggle to find alternate modes of travel in such instances is draining without appropriate solutions. Railofy with its data-driven approach of underwriting and offering a unique solution to passengers in a large travel market in India is a startup ready to disrupt the travel insurance segment.”
Railofy’s USP is that it provides alternate travel at price points close to the railway ticket price which is affordable for the vast majority of Indians without compromising on convenience or timing. Passengers can purchase the protection from the Railofy app (Google Play Store and Mobile-site) against their ticket for an average price of ~200 Rs (starting at Rs 50). Railofy monitors the passenger’s waitlisted ticket in the background. If the ticket is not confirmed post chart preparation, Railofy provides a flight close to the price of a train ticket or bus at a nominal price for shorter routes. The price for flight/bus options is fixed at the time of purchasing WL & RAC protection itself, thus ensuring that passengers are shielded from last-minute rising fares. The user is required to pay for the flight ticket only after chart preparation is out and their name is not listed.
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