Namma Yatri Raises $11 Million from Google, Blume Ventures at $55 Million Valuation

Ride-hailing startup Namma Yatri, supported by fintech firm Juspay, has raised ₹92 crore ($11 million) in a pre-Series A funding round. This funding round values the company at $55 million and was led by early-stage investors such as Blume Ventures and Antler, with Google also participating.

First External Funding Round

This is the first time Namma Yatri has raised external capital since it started in November 2022. Shan MS, Chief Growth Officer of Juspay, said the funds were raised to put minimal pressure on the company as it builds on a no-commission model, which is unique in the ride-hailing market.

Funding Goals and Strategy

Shan emphasized that Namma Yatri aims to avoid the deep discounts typical in the ride-hailing industry. Instead, the new investment will help manage cash burn and allow the company to refine its no-commission model. The funding will also help Namma Yatri expand its auto and cab services to more cities.

Expansion Plans

The Bengaluru-based firm plans to reach tier-2 and tier-3 towns and cities. They aim to increase driver earnings and customer convenience by addressing pain points in the ride-hailing business with their open-network model.

Shan mentioned that Namma Yatri will focus on over 15 tier-2 cities in South India, such as Mangalore, Kottayam, Madurai, and Salem, in the coming months. He also noted that Bengaluru operations are already profitable, and they aim to achieve the same in other cities.

Future Goals

With the latest funding, Namma Yatri plans to integrate public transportation through direct-to-driver and multimodal transportation models. The company wants to capture a significant share of India’s ride-hailing market with its no-commission business model.

Innovative Business Model

Launched in November 2022 in Bengaluru, Namma Yatri uses the Beckn Protocol, a government-backed, open-source protocol for creating decentralized, peer-to-peer networks for economic transactions. This protocol is also used for the government’s Open Network for Digital Commerce (ONDC).

Company Structure

In March, Namma Yatri became a separate entity named Moving Tech Innovations Pvt. Ltd. This separation allows for independent fundraising. Juspay Technologies remains the largest shareholder, with investors like SoftBank and Accel holding indirect stakes.

Operational Highlights

Since its inception, Namma Yatri has completed 46 million trips with 3.6 lakh drivers. Unlike competitors Uber and Ola, Namma Yatri charges drivers a subscription fee instead of taking commissions on each ride. Auto ride fares start at ₹25.

Support from Investors

Fady Abdel-Nour and Nitin Sharma, partners at Antler, praised Namma Yatri’s focus on Digital Public Infrastructure (DPI), calling it pioneering and emphasizing their support for building a more inclusive, efficient, and sustainable future for mobility.