Used Car Leasing Startup PumPumPum Scores Seed Funding From LetsVenture Amid COVID-19 Pandemic
It plans to use the funds for category disruption, technology development and expansion and aims to empower smart car ownership for Indian millennials.
PumPumPum, India’s startup to offer ‘Used Car Leasing’ in the corporate and retail segment has secured ₹2.2 crore seed funding from a LetsVenture Syndicate led by Pallav Pandey (former Co-founder & CEO, Fastfox.com) and with the participation of other angel investors including Dr Ritesh Malik (Founder & CEO, Innov8), Shobhit Shukla (Co-Founder, Near.co), Rahul Agarwal (CFO, Near.co). PumPumPum plans to utilise the capital for category disruption, technology development, brand building and expansion.
Average ownership of firsthand used cars in India is approximately 24-30 months and is dramatically decreasing. As compared to buying and maintaining a car for 24 months, a leased car for 24 months turns out to be extremely affordable and hassle-free. In its endeavour to empower smart car ownership for Indian millennials by providing ‘cars as a service’ and ensuring safety, affordability, flexibility & minimised liabilities, PumPumPum was conceptualized by Tarun Lawadia and Sameer Kalra. Tarun Lawadia, Founder of PumPumPum, is an innovator and a serial entrepreneur with few successful startups such as plussapp (sold to netmeds) in his portfolio. Sameer Kalra, Co-Founder & chief growth officer of PumPumPum, is a veteran in Automobile Leasing with over 20 years of experience in the corporate world. PumPumPum is seamlessly taking care of all the used car owner’s risks such as repair, maintenance, tyres, batteries, car resale value, insurance etc; thus, ensuring a safe and comfortable travel with hassle-free ownership.
“The concept of ‘Used Car Leasing’ is fast catching pace in the country. PumPumPum’s unique business model aims at dealing with the huge challenges of used car ownership faced by both the corporate and retail segment. The proposition is perfectly aligned with the dynamic changes in personal travel. Backed by in-depth consumer insights and a passionate team, PumPumPum is one of the strongest and most promising startups in the used car leasing space and we look forward to taking them to their next stage of growth,” said Sunitha KR, Director, LetsVenture.
Talking about the company's plans to utilize the funds, Tarun Lawadia, Founder & CEO, PumPumPumsaid, “To take this niche category to newer heights in the country, we have strongly established a robust ecosystem of partners and brand associations. We are committed to offer a hassle-free smart car experience with zero down-payments, zero maintenance charges and zero insurance premiums. Ranging from monthly subscriptions of ₹10,000 to ₹1 lakh, PumPumPum car subscriptions are dynamic based on the duration of the subscription. Witnessing a huge demand for luxury cars in the segment, we are also planning to offer Used Luxury Cars in the leasing format. The capital infusion will help us in category disruption and strengthen our product development, marketing and expansion plans.”
“The company intends to solve the broken market scenario of the used car ecosystem in India and abroad. PumPumPum is committed to address and solve issues related to lack of trust on dealers, low penetration of financing in used car space, risk of repairs in a used car, non-transparent pricing (lack of standard price parameters), the low resale value of the third hand used car resulting in a high rate of depreciation. PumPumPum’s innovative approach is paving way for a new B2B2C proposition in the highly unorganized used car market,” said Pallav Pandey, renowned investor and former Co-founder & CEO, Fastfox.com.
The company is riding on technologies such as IoT to deliver a seamless, safe and exceptional experience to users. All the cars are IoT enabled cars (OBD device) which captures customer driving behaviour & car health parameters. IoT enabled cars add smart features to economical cars which are easily accessible by the user through the PumPumPum app. The company is applying machine learning to reduce maintenance cost by taking a preventive course with the help of data received through IoT. Real-time credit check allows the user to get rid of lengthy banking and loan processes along with a lot of paper trail.
Addressing the rising trend of Used Car leasing in the country, Sameer Kalra, Co-Founder & Chief Growth Officer said, “Realising the fact that leasing by nature has the ability to solve the entire ownership related issues, we are the only company in the Used Car Leasing space to provide a car with a white number plate ensuring a sense of pride and security for our customers. Our car subscription model enjoys the first-mover advantage In Indian market where ‘New Car’ annual sales are at an all-time low. Our unique business model offers ownership aimed at effectively solving all consumer issues, right from pricing to quality and flexibility. Currently, our services are available in Delhi-NCR and we have aggressive plans to reach out to newer markets including Bengaluru, Hyderabad, Mumbai & Pune.”
In the new informed world order, especially as people get used to living with COVID19, pre-owned car leasing is moving from being a lifestyle and an aspirational product to a perfectly placed end to end mobility solution. People are willing to avoid using public transport, cabs etc. for travel, pushing back the concept of ‘shared mobility’. Customers are now looking for short-term financial commitments with easy exit options and corporates are seeking affordable car leasing models as an end to end employee mobility solution. In the current pandemic situation, the primary focus of companies is to make sure that every employee who commutes to office travels with minimal infection risk. PumPumPum leasing product is uniquely positioned to cater to this critical requirement as well. With 78% of pre-owned car buyers from the corporate world, the company's subscription model provides 100% tax saving to corporate subscribers resulting in 40% cheaper monthly subscription fee effectively.
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