Bengaluru-based DriveU, an on-demand driver aggregator platform owned by Humble Mobile Solutions Private Limited, has reported an impressive 66% increase in its revenue for the fiscal year ending March 2024. Along with this growth, the company also reached profitability for the first time.
DriveU’s operational revenue surged to ₹24.50 crore in FY24, up from ₹14.75 crore in the previous year. This boost in earnings is largely attributed to a rise in platform usage. Founded in 2015 by father-son duo Ashok Shastry and Rahm Shastry, DriveU operates in key cities like Mumbai, Bengaluru, Delhi NCR, Hyderabad, Chennai, and Kolkata, offering round-the-clock services through its expansive network of driver partners.
While revenue grew, the company remained focused on managing expenses. Direct costs increased to ₹7.55 crore from ₹4.26 crore in FY23, and employee benefit expenses saw a 21% rise to ₹10.44 crore. Notably, DriveU posted a profit before tax of ₹11.35 lakh, a remarkable turnaround from a loss of ₹2.29 crore in FY23. This success was primarily due to cost-cutting measures in areas like finance costs, which dropped to ₹82.11 lakh from ₹1.18 crore, and reduced depreciation and amortization expenses, recorded at ₹23.79 lakh.
In addition to its financial performance, DriveU managed to significantly reduce its long-term debt, bringing borrowings down to ₹44.90 lakh in FY24 from ₹6.82 crore the previous year. Improved cash flow was another positive outcome, with net cash from operations turning positive at ₹2.18 crore, thanks to better working capital management.
Looking ahead, DriveU has set a revenue target of ₹125 crore for FY25.
To date, DriveU has raised nearly ₹60 crore ($7 million) and is currently valued at approximately ₹260 crore ($30 million), according to startup intelligence platform TheKredible.
While DriveU continues to strengthen its position, the on-demand driver space has seen increased competition. In March, Cars24 briefly entered the market with its AutoPilot app, though the service was later discontinued. Additionally, PeakXV-backed Park+ joined the sector in June, alongside other notable competitors like Drivers4Me, Driverzz, PickMyCar, and Namma Driver.