TYGR planning to mop up $60 million to fund expansion, create marketplace

MUMBAI: TYGR, the newest entrant in the app-based cab aggregation space, is planning to raise up to $60 million (Rs 387 crore) in the next 12 months, as the company seeks to expand to more cities and build a marketplace for goods transportation.

The first round of up to $10 million will be completed within a quarter from VCs, said the company which announced its Mumbai entry on Wednesday. The funds from the initial round will go into marketing and promotion, as it seeks to carve a niche for itself in a market led by Ola and Uber.

Investment in creating a platform for goods transportation services will happen in the second phase, it said. The company is betting on this space because of expectations that the implementation of goods and services tax will boost demand for logistics services by creating a seamless market countrywide.

Entering the market with a USP of no surge pricing and no incentive-linked pay for the cab driver, TYGR will just seek to be a platform that connects the cab driver and the traveller and leave the control in the hands of the driver. Participating drivers need to pay a nominal monthly subscription fee - Rs 500 for cars and Rs 350 for autorickshaws -to use the platform and can keep their earnings.