InDrive, a ride-hail company operating in over 45 countries, has secured $150 million in funding through a debt instrument. The repayment of this unique round of debt will be linked to the performance of the ride-hailing platform, giving it flexibility on repayments based on the profits generated over time.
The Chief Financial Officer, Dmitri Sedov, stated that the latest funding round is expected to support the company's marketing activities and the development of new services. General Catalyst Group Management LLC was the lead participant in this funding.
Over the past year, InDrive has expanded into delivery, cargo transportation, and handyman services that can be booked through the app. It has also seen a significant increase in its gross revenue of 88% in 2022 and expects to become cash flow positive this year.
Chief Executive Arsen Tomsky expressed his confidence in the company's ability to successfully expand into new communities and business verticals in the coming years. He further stated that InDrive is in a strong financial position and has a choice of financing instruments that best suit its requirements.
According to Dmitri Sedov, the decision to raise this kind of funding was made because of the current macroeconomic conditions that have plagued the tech ecosystem. "Given the down market, we had to choose whether to offer equity or something that allows us not to put a price tag on the company." "Since we didn't desperately need the money, we decided to raise this kind of funding," he said in an interview with Bloomberg.
Indrive Founder, Arsen Tomsky
InDrive is the world's second-most-downloaded ride-hailing app and is very popular in the emerging market. Data.ai reported that the app was downloaded 61.8 million times in 2022, up 45% from the previous year.
About 60% of the company's business comes from Latin America, with Mexico, Kazakhstan, Brazil, Colombia, and Egypt being its biggest markets. In 2022, InDrive extended its business to Australia, where it began functioning like in other countries.
InDrive is a Russian-founded ride-hailing company that was formerly known as InDriver. However, it has since become an American-based company to distance itself from Russia since the invasion of Ukraine by Russia. It has been funded by four investors, with General Catalyst and Insight Partners being its most recent investors.
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