PumPumPum (Dream Road Technologies Private Limited) has declared that a Pre-Series A equity financing of ₹18 crore has been completed. It is an early-stage venture capital firm, LC Nueva, that led the investment along with significant contributions by Mufin Green and Anupam Finserv. This new capital inflow will further jolt the company on its quest to modernise vehicle leasing with a capital-efficient model that is technology-first.

Capital deployment and performance metrics

The new capital raised will be implemented by PumPumPum in the form of a mixed-tech platform to create an asset-light leasing technology in India. PumPumPum operates on the technology integration concept, unlike traditional leasing companies, which are limited by the heavy financial burden of holding a massive internal balance sheet that enables the business to store its vehicle inventory.

The core of PumPumPum innovation is the asset-light strategy. Vehicle leasing in India, traditionally, is a niche market, and penetration levels are as low as below 5%-drastically lower than the 30% or more penetration in established markets worldwide. PumPumPum will fill this gap by positioning itself as a technology layer between providers and users of capital.

Banks and Non-Banking Financial Companies (NBFCs) can use their proprietary fintech platform to deploy capital directly into the leasing ecosystem. In the meantime, PumPumPum undertakes the entire responsibility of the asset lifecycle management. Such an integrated management encompasses real-time vehicle health checks, maintenance, and eventual resale or redeployment of the vehicles. The platform mitigates the risks of default to its financial partners by managing the complexity of its operations.

Started six years ago, PumPumPum has developed into a used-car leasing innovator into a full-stack B2B and B2B2C corporate mobility provider. The company has a broad client base nowadays consisting of large corporates, SMEs, MSMEs, and fleet operators. Its range now includes new internal combustion engine (ICE) automobiles, used vehicles, and the fast-growing electric vehicles segment.

Demand for flexible mobility is highlighted by the performance metrics of the company. PumPumPum is expanding at an annual rate of 70% and it operates more than 1,000 vehicles. Recently, it hit the ₹100 crore mark on Assets Under Management (AUM). In the future, the company has a very ambitious objective of achieving ₹1,000 crore AUM in three years, using its technology-oriented first model to grow without restrictions as a traditional asset-based balance sheet.

Tarun, Founder & CEO of PumPumPum and an IIT Bombay alumnus, said, “Traditional asset-heavy models limit growth. Our asset-light platform changes the equation by enabling efficient capital deployment while delivering a seamless mobility experience. This funding accelerates our journey toward making corporate leasing mainstream in India.”

Quotation Source: indianstartuptimes  

Conclusion

The ₹18 crore investment led by LC Nueva is a critical change in the journey of PumPumPum as it transforms itself into a massive technology force in the Indian mobility industry. Having addressed the fundamental pain points of high down-payments and maintenance burdens on the consumer, creating a safe deployment service to financial institutions, PumPumPum is in a great position to become the next vehicle leasing service in India to adopt.