India’s 1st Used Car Leasing Startup Secures Debt Line From ICICI, Canara Bank & Kogta Financials
PumPumPum, which is India’s first-ever startup which gives used cars on lease, has secured debt line from leading financial institutions.
ICICI Bank, Canara Bank and Kogta Financials have provided a debt line of Rs 2 crore to PumPumPum for expanding their operations across India, and enter newer markets.
Besides, the company has also received standing instructions on Rs 10 crore of debt financing from ICICI bank and other leading financial institutions.
What Is PumPumPum
PumPumPum describes themselves as India’s 1st ever used car leasing startup, wherein users can subscribe used cars, from as low as Rs 10,000 per month.
The subscription model of used cars is a new concept in India, and designed for the millennials who wish to try out and experiment with different cars, without being bogged down with long term EMIs and loans.
Infact, the monthly subscription charges for most of the used cars are well below the EMIs, in case one chooses to buy them, and there are tax benefits as well.
What Will PumPumPum Do With New Debt Line?
As per information received by us, PumPumPum plans to expand its fleet of used cars by adding 1000 more vehicles, and expanding their service to more cities. The service is currently available only in Delhi-NCR.
Sameer 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.”
Funding For PumPumPum
In July this year, PumPumPum received seed funding of Rs 2.2 crore from LetsVenture Syndicate.
This was led by Pallav Pandey, founder of FastFox and supported by Ritesh Malik, who is the Founder and CEO, Innov8, Shobhit Shukla, who is the Co-Founder of Near.co and Rahul Agarwal, who is the CFO of Near.co.
We will keep you updated, as we receive more information.