[Funding alert] Used car leasing startup PumPumPum raises seed round from LetsVenture
, a Gurugram-based startup to offer ‘used car leasing’ in the corporate and retail segment, has secured Rs 2.2 crore in seed funding from LetsVenture Syndicate, led by Pallav Pandey (former Co-founder and CEO, ).
The other angel investors who participated in the round include Ritesh Malik (Founder and CEO,), Shobhit Shukla (Co-Founder, Near.co), and Rahul Agarwal (CFO, Near.co).
PumPumPum said it plans to utilise the capital for category disruption, technology development, brand building and expansion.
Tarun Lawadia, Founder and CEO, PumPumPum added,
“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 Rs 10,000 to Rs 1 lakh, PumPumPum car subscriptions are dynamic, based on duration of 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.”
Tarun Lawadia is a serial entrepreneur with few successful startups such as Pluss App (sold to Netmeds) in his portfolio.
Founded by Tarun Lawadia and Sameer Kalra, PumPumPum is providing IoT enabled pre-owned cars at a subscription for short to long-term duration without any hassles of service and maintenance.
By creating a niche space to support the entire used car ecosystem including car dealer, customer, insurance partners, automobile workshops, banks and NBFCs, PumPumPum is taking care of all the used car owner’s risks such as repair, maintenance, tyres, batteries, car resale value, insurance etc for a safe and comfortable travel with hassle-free ownership.
“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.
The startup claims that it is riding on technologies such as IoT to deliver a safe experience to users. All the cars are IoT-enabled cars (OBD device) that capture customer driving behaviour and car health parameters. IoT-enabled cars add smart features to economical cars that are easily accessible by the user through the PumPumPum app. It 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 process along with a lot of paper trail.
Sameer Kalra, Co-founder and Chief Growth Officer shared,
“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, and Pune.”
With 78 percent of pre-owned car buyers from the corporate world, PumPumPum’s subscription model claims to provide 100 percent tax saving to corporate subscribers resulting in 40 percent cheaper monthly subscription fee effectively.