India’s first used car leasing startup PumPumPum secures debt line
Date: 15 Sep 2020
India’s only startup to offer ‘Used Car Leasing’ in the corporate and retail
segment has secured Rs 2 crore debt line from ICICI Bank,
Canara Bank and Kogta Financials. The startup will primarily utilise the funds
to accelerate its one of its kind ‘Used Car Leasing’ platform and meet its
asset financing requirements.
its endeavour to create a robust ecosystem for the niche yet promising ‘Used
Car Leasing’ category in India, the startup has also received standing
instructions of Rs 10 crore on debt financing from ICICI
bank and others. PumPumPum will utilise the capital to further extend its large
pool of cars by adding over 1000 more vehicles. This will support the
company in scaling up business and growth on a month on month basis.
is in addition to Rs 2.2 crore seed funding secured recently
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,
Kalra, Co-Founder & Chief Growth Officer said, “The fact that we have
world-class financial institutions such as ICICI Bank supporting a niche
category is a clear indication of the huge demand and opportunities that lies
in the ‘Used Car Leasing’ space. The building of this niche yet promising
category will need significant investments in near future. We are confident
that this debt funding will help us in managing assets and delivering seamless
service offerings to our retail and corporate customers.”
to Indian Blue Book on pre-owned car market, the old cars market is 1.5 times
the market of new cars. Industry experts are also witnessing a significant jump
in demand for used luxury car segment which is growing at a CAGR of 22-24%.
While sales volumes in the used car market are growing at a CAGR of 18-20%.
on the current situation, Tarun Lawadia, Founder & CEO, PumPumPum said, “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. To take the niche ‘Used Car Leasing’ segment to ultimate
heights in the country, we have strongly established a robust ecosystem of
partners and brand associations who are consistently supporting us to scale
faster than the market expectations in the current scenario. We are committed
to offer a hassle-free smart car experience to Indian millennials.”
was conceptualised 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.
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, the company is also
planning to offer Used Luxury Cars in the leasing format. Currently its
services are available in Delhi-NCR and has aggressive plans to reach out to
newer markets including Bengaluru, Hyderabad, Mumbai & Pune.