Deepti Sri · · 2 min readThai car rental startup raises 7-figure funding from Toyota Tsusho, others
Drivehub, an online car rental company based in Thailand, announced that it has raised a seven-figure series A funding round led by Toyota Tsusho, CAC Capital, and KK Fund.
The Drivehub team / Photo credit: Drivehub
The startup offers different tiers of service on its platform, including car rental via credit card through well-known international companies such as Hertz, Dollar, and Sixt, among others. Drivehub users can also pay with cash when renting cars from local providers.
With the freshly raised funds, Drivehub plans to “expand on a regional scale,” said CEO Thatchai Chuaprapaisilp, entering markets such as Indonesia, Malaysia, and Singapore in 2022. It’s also looking to develop its software and technological systems.
The investment will leverage Toyota Tsusho’s strengths in the sale and purchase of new or used cars, auto financing, car insurance, and vehicle maintenance. It will also help local rental car providers on Drivehub expand their business.
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Drivehub says it grew by 50% in November 2020 compared to the same period in 2019. That’s despite a sales setback of as much as 90% in April 2020 due to the Covid-19 pandemic. The company told Tech in Asia that it has returned to profitability since August 2020 and aims at generating a revenue of US$1 million in FY21.
The company had reached break-even in October 2019. Drivehub is also set to capitalize on Thailand’s rental-car market, which is expected to hit US$650 million in 2021.
Edited by Collin Furtado and Eileen C. Ang
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