Ride-hailing platform, inDrive raises $150m from General Catalyst to fuel growth and innovation

Ride-hailing app, inDrive has raised $150 million in a financing extension round. This is coming a little more than a year after the mobility technology company raised $150 million from General Catalyst in February 2023.

According to inDrive Chief Financial Officer, Dmitry Sedov, the financing extension can be further extended for an additional year. Thus the total funding from General Catalyst could extend well beyond the $300 million it has raised so far after next year’s extension.

The CFO said this financial structure is designed to support the company’s ambitious plans without introducing additional risk to its operations.

“Securing this financing from General Catalyst empowers us to continue our rapid growth and innovation while maintaining a strong financial position and financial flexibility,” he said. He also said next year’s extension would “bolster growth, invest in product improvements, expand its service offerings, and enter new markets,” he said.

Speaking about the funding, Managing Director of General Catalyst, Pranav Singhvi, said: “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’s global expansion

InDrive is currently the fastest-growing ride-hailing app in the world. The company’s total number of app downloads climbed from 42.6 million in 2021 to finish at 61.8 million by the end of 2022, becoming the second most downloaded ride-hailing app worldwide based on Google Play and App Store data.

The company also said it was the second most downloaded ride-hailing app for the second consecutive year and ranked among the top five most downloaded travel apps globally. Speaking of the impressive growth, inDrive founder and CEO, Arsen Tomsky, said the increasing number of downloads underscores the success of the company’s approach to launching in new environments.

“Despite a challenging macro environment, the data.ai figures underscore the success of our approach to launching in new geographies and maintaining growth rates across existing markets. Our goal at inDrive is to ensure that everyone who uses our app – from our passengers and drivers to our in-app handymen – has greater control over pricing alongside the flexibility to negotiate a fee which they feel is fair,” he said.

The company boasts a massive expansion drive and nowhere is its growth felt more than in Africa where it is going head to head with the two biggest ride-hailing companies in the world, Uber and Bolt.

Describing itself as a mobility marketplace, the company boasts a unique new approach to ride-hailing whereby it doesn’t set prices for its passengers. On the contrary, it shows itself as truly a marketplace by acting as a platform that brings drivers and riders together. The two parties then agree on a price and set the ride modalities.

This new approach is quite unique and different from the conventional ride-hailing approach where everything is controlled by the app company. This includes prices, meeting points, and the likes. inDrive’s innovative approach is a key factor powering its current growth and global expansion. With this new investment, one could expect deeper penetration and further expansion of the company’s services.

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