Drivehub, a Thailand-based online car rental platform that connects car rental companies to drivers, has secured a seven-digit Series A fundraising round led by Toyota Tsusho, CAC Capital, and KK Fund.
With the new capital, the firm is set to augment its software and technological systems, as well as expand to other markets in the region including Indonesia, Malaysia, and Singapore. Thatchai Chuaprapaisilp, CEO and co-founder of Drivehub, said in a release that the firm is set to tap into new verticals within the mobility sector including peer-to-peer car rental and a vehicle subscription model.
Founded in 2017, the firm aims to digitalize local car rental firms by offering a one-stop solution that enables rental providers to list their cars on its platforms. As 52% of car rentals in Thailand are paid for in cash, Drivehub allows car renters to transact using either cash or online payments.
Drivehub said its total sales grew 50% year-on-year (YoY) in 2020 despite revenue falling 90% YoY in April 2020 due to nationwide lockdowns prompted by COVID-19.
Asia’s car rental market is set to grow at an annual rate of 16% and to USD 23.5 billion in total revenue in 2021, according to data from Statista.
The news comes two days after KK Fund invested USD 20 million in Malaysian multi-bank supply chain finance and P2P financing platform CapBay in a Series A round.