Online intercity cab aggregator AHA Taxis has raised pre-series A funding of undisclosed amount from Lead Angels and its existing investors ah! Ventures.
The Noida-based company plans to utilize the fresh funds in technology and to expand its operations in Bihar, Jharkhand and a few pilgrimage destinations in India. In June last year, the company had expanded to 20 cities and towns including Mumbai, Pune, and Shirdi in Maharashtra; Jaipur, Pushkar and Alwar in Rajasthan; Bhopal, Indore and Ujjain in Madhya Pradesh; Hyderabad, Tirupati, Srisailam, Vizag and Vijayawada in Andhra Pradesh; and Bangalore, Ooty, Mangalore, Coorg and Mysore.
Launched in 2015 by Amit Grover, Praveen Samariya, Kunal Krishna, Arayan Kumar Sharma and Shivam Mishra, AHA Taxis has achieved break-even, it said in a statement. The company added that, it “breaks-even with scale and reach to geographies where likes of Uber and Ola is not operating.” It must, however, be clarified that while the other two are largely intra-city cab aggregators, AHA specializes in inter-city taxi services.
The company says in its statement that its unique point is that it offers one-way fare for hiring taxis for outstation trips, whereas the norm used to be to charge the return fare. It adds that its customers end up saving 45% to 50% of what they would have otherwise spent on a one-way trip between any pair of cities in India.
Online taxi-hailing space is dominated by Uber and Ola, and both the company offer cabs for outstation travel. Ola also allows users to book a one-way cab to another city without having to pay for the round trip on Ola Outstation. Uber too has a one-way intercity riding option under its UberHIRE category.
In terms of funding, Ola raised $1.1 billion in October, led by Tencent Holdings Limited and existing investor SoftBank, in addition to other new US-based financial investors also participated in the round. Moreover, the cab aggregator said in a statement that Ola is also in advanced talks with other investors to close an additional $1 billion as part of the current financing round, concluding a total raise of over $2 billion. In May this year, Uber infused Rs 51.64 crore into its India operations.