[Funding Alert] Routematic raises $2.5 M to build EV-centric transportation network
The Bengaluru-based startup will deploy the funds to expand its operations - including staff transportation, fleet marketplace and staffing.Debolina Biswas
Fleet service and transport automation software provider, Routematic, raised $2.5 million in a Pre-series A round of funding. It was led by Naresh Malhotra, former Coffee Day CEO.
Existing investor VAMM Ventures also participated in the round. A significant portion of the funds will be deployed towards building the country's first EV-centric smart city transportation network.
The company is backed by Blume Ventures and VAMM Ventures. With this latest round, the total capital raised by Routematic stands at $4.5 million.
Naresh Malhotra said, "Strength growth, solid unit economics and execution precision, they have been ticking all three boxes consistently. Their (Routematic's) customers have been seeing significant value in the form of improved operational metrics, significant efficiency improvements and cost savings."
Routematic will also be using the funds to expand its operations - including staff transportation, fleet marketplace and staffing.
The Bengaluru-based startup was founded by ISB alumnus Surajit Das and software engineer Sriram Kannan in 2013. It began as a transport automation solution provider, operating on the SaaS model and offering cloud-based location tracking and vehicle management system to large enterprises in the IT and financial sectors.
In press statement, Surajit said,
"We are pleased to announce our continued association with Naresh Malhotra who has played a significant role in our growth and will continue to do so in future. Over time we have increased revenue per asset to our fleet marketplace members and have more than doubled the revenues in the last 12 months. We are extremely capital efficient, as is evident in our data models, which allow us to execute at sub 1 percent variation to projections."
Routematic plans to channelise its funding towards five core markets - Pune, Bengaluru, NCR, Hyderabad, and Chennai, for the next 12 months. Strengthening its position, the company aims to enable EV-based transportation ecosystem in these markets.
Ajay Malhotra of VAMM Ventures said, "This is the only way to de-congest roads and change over to greener transportation networks and have happy commuters and cities. Routematic is a pioneer in smart transportation networks. Its target market is both simple and sizeable. The average commuter takes 14 trips in a week of which 10 are commute to or from work and Routematic is solving these 10 trips!"