Bargain-your-ride e-hailing service inDrive will use its latest $150 million (R2.8 billion) financing from venture capital firm General Catalyst, to extend operations to new cities and countries globally, including in Africa.
According to a statement, the company intends to utilise the funds to enhance its product offerings, broaden its services and venture into new markets across Africa.
It will also accelerate its strategy of promoting equitable access to mobility services on the continent.
The US, California-headquartered company received an initial $150 million from General Catalyst last year – with the newly-secured finance bringing the total amount to $300 million.
The financing comes in the form of a debt instrument, and follows a good year for inDrive, which saw 54% growth in net revenue in 2023, it says.
These results, according to the company, demonstrate its robust growth trajectory and strategic utilisation of the initial financing to scale operations sustainably.
Dmitry Sedov, CFO of inDrive, comments: "Securing this financing from General Catalyst empowers us to continue our rapid growth and innovation, while maintaining a strong financial position and financial flexibility.
“This financial structure is designed to support our ambitious plans without introducing additional risk to our operations. We are grateful for the confidence General Catalyst has shown in our mission and strategy, as we strive to make mobility accessible for communities around the globe."
inDrive operates in 749 cities in 46 countries. The Uber and Bolt rival established its South African operations in 2019, after making its African debut in Tanzania in 2018.
It operates in nine South African cities: Cape Town, Johannesburg, Pretoria, Durban, Gqeberha, East London, Pietermaritzburg, Rustenburg and Polokwane.
Pranav Singhvi, MD of General Catalyst, says: “As long-time partners with inDrive, we are excited to help them continue to scale their growth and set the company up for success as they enter new markets. We are enthusiastic about supporting a business with a robust mission that positively impacts communities globally.”
inDrive notes its business model is centred on providing users with a viable alternative to e-hailing rivals – through a flexible pricing model.
The service does not offer standard rates for rides, but operates on a peer-to-peer pricing principle, which allows passengers and drivers to directly negotiate a fare. This ensures terms are as transparent and fair as possible, it states.
The company recently announced it was recognised as the second most downloaded ride-hailing app for the second consecutive year, with over 200 million downloads to date.
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