India’s first used car leasing startup PumPumPum secures debt line

PumPumPum, India’s only startup to offer ‘Used Car Leasing’ in the corporate and retail segment has secured Rs 2 crore debt line from ICICI Bank, Canara Bank and Kogta Financials. The startup will primarily utilise the funds to accelerate its one of its kind ‘Used Car Leasing’ platform and meet its asset financing requirements.

In its endeavour to create a robust ecosystem for the niche yet promising ‘Used Car Leasing’ category in India, the startup has also received standing instructions of Rs 10 crore on debt financing from ICICI bank and others. PumPumPum will utilise the capital to further extend its large pool of cars by adding over 1000 more vehicles. This will support the company in scaling up business and growth on a month on month basis.

This is in addition to Rs 2.2 crore seed funding secured recently from a LetsVenture Syndicate led by  Pallav Pandey (former Co–founder & CEO, Fastfox.com) and with the participation of other angel investors including Dr. Ritesh Malik (Founder & CEO, Innov8), Shobhit Shukla (Co-Founder, Near.co), Rahul Agarwal (CFO, Near.co).

Sameer Kalra, Co-Founder & Chief Growth Officer said, “The fact that we have world-class financial institutions such as ICICI Bank supporting a niche category is a clear indication of the huge demand and opportunities that lies in the ‘Used Car Leasing’ space. The building of this niche yet promising category will need significant investments in near future. We are confident that this debt funding will help us in managing assets and delivering seamless service offerings to our retail and corporate customers.”

According to Indian Blue Book on pre-owned car market, the old cars market is 1.5 times the market of new cars. Industry experts are also witnessing a significant jump in demand for used luxury car segment which is growing at a CAGR of 22-24%. While sales volumes in the used car market are growing at a CAGR of 18-20%.

Elaborating on the current situation, Tarun Lawadia, Founder & CEO, PumPumPum said, “As people get used to living with COVID19, pre-owned car leasing is moving from being a lifestyle and an aspirational product to a perfectly placed end to end mobility solution. To take the niche ‘Used Car Leasing’ segment to ultimate heights in the country, we have strongly established a robust ecosystem of partners and brand associations who are consistently supporting us to scale faster than the market expectations in the current scenario. We are committed to offer a hassle-free smart car experience to Indian millennials.”

PumPumPum was conceptualised by Tarun Lawadia and Sameer Kalra. Tarun Lawadia, Founder of PumPumPum, is an innovator and a serial entrepreneur with few successful startups such as plussapp (sold to netmeds) in his portfolio. Sameer Kalra, Co-Founder & chief growth officer of PumPumPum, is a veteran in Automobile Leasing with over 20 years of experience in the corporate world. PumPumPum is seamlessly taking care of all the used car owner’s risks such as repair, maintenance, tyres, batteries, car resale value, insurance etc; thus, ensuring a safe and comfortable travel with hassle free ownership.

Ranging from monthly subscriptions of Rs 10,000 to Rs 1 lakh, PumPumPum car subscriptions are dynamic based on duration of subscription. Witnessing a huge demand for luxury cars in the segment, the company is also planning to offer Used Luxury Cars in the leasing format. Currently its services are available in Delhi-NCR and has aggressive plans to reach out to newer markets including Bengaluru, Hyderabad, Mumbai & Pune.