LetzRyd, a fleet management startup, has successfully raised $4 million (approximately ₹38 crore) in a funding round led by JIF Capital Ltd, with contributions from 15th Rock and existing investor UNLEASH Capital Partners.
The new capital will be utilized to accelerate the company's expansion, enter new markets, and grow its fleet size. Additionally, LetzRyd plans to enhance its technology and operational infrastructure.
Founded in 2023 by Tarun Jain, Kushagra Dokania, and Sarvagna G, LetzRyd currently operates a fleet of over 1,000 vehicles leased to taxi-hailing services. The company is presently active in Hyderabad, Bengaluru, and Mumbai, with plans to expand into Delhi and Chennai soon.
In its inaugural year, LetzRyd reports a 20% to 22% increase in driver earnings and a notable reduction in attrition rates compared to industry standards. With a team of 54 members, the startup aims to scale its operations in urban markets, focusing on efficiency, driver retention, and sustainable growth.
LetzRyd faces competition from firms such as Everest Fleet, WTi Cabs, Carrum, and Zenplus Fleet in the B2B fleet leasing sector.
This funding arrives during a transformative period in India's ride-hailing and fleet market, which is shifting from premium services to utility-oriented mobility, particularly emphasizing two-wheelers and auto-rickshaws in non-metro areas.
The market landscape has evolved from a duopoly to a competitive multi-player environment, with Rapido leading in total ride volume.
Further intensifying competition, the government-backed Bharat Taxi was launched earlier this year, quickly gaining traction with over 2.73 million downloads shortly after its debut.
In response to the growing competition, Uber recently invested nearly ₹3,000 crore into its Indian operations.
According to Statista Market Forecast, India's ride-hailing and fleet market is expected to grow from $6.42 billion in 2023 to around $7.6 billion by 2028, potentially reaching $11.64 billion by 2029.
