Drivehub, a Thailand-based online car rental platform, announced today it has closed a “USD seven-figure” Series A funding round, co-led by Toyota Tsusho, CAC Capital, and KK Fund.
As per a press note, the fresh funds will be deployed to enhance Drivehub’s software and technological systems, as well as expand to new markets in Indonesia, Malaysia and Singapore.
Launched in 2017, Drivehub is an online marketplace where users can “instantly” check vehicle availability, compare prices and quality and transact. The Bangkok-based startup claims it is able to do that through its “real-time” connection to the fleet of rental car companies.
Drivehub shared that it also offers different payment methods for car rentals on its platform. Users can transact through a credit card for international service providers such as Hertz and Dollar, or choose to pay by cash for local service providers.
The ability to pay for rentals with cash is welcomed in Southeast Asia where credit card signups have remained low. Consumers in the region often resort to alternate forms of payments such as cash. In Thailand, 52 per cent of car rentals occur without a credit card.
Also Read: Do you take cash? 3 hurdles to a cashless Singapore
Drivehub claims it has grown by 50 per cent compared to the same period last year, despite sales setbacks by as much as 90 per cent in April 2020 due to the COVID-19 pandemic.
“Drivehub is in the process of using the funding to expand on a regional scale, while also seeking for opportunities to transform the conventional rental car service,” said Thatchai Chuaprapaisilp, CEO and Co-founder of Drivehub.
The company also announced a new partnership with Thai trading company Toyota Tsusho. With the latter’s capabilities in sale-purchase of new or used cars, auto financing and car insurance, Drivehub said it would be able to expand and tailor its solutions to meet the changing demand of consumers.
According to the startup, small local rental car providers will be provided with the opportunity to enhance and expand their business in a sustainable way too.
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Image Credit: Drivehub
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