SUMMARY
- DriveU’s revenue from operations surged to Rs 24.50 crore in FY24 up from Rs 14.75 crore in FY23.
- The company also noted a positive PAT of Rs 11.35 lakh in FY24.
- The company’s total expenses grew 41.3% YoY from Rs 17.3 crore in FY23 to Rs 24.5 crore in FY24.
Bengaluru-based platform for on-demand drivers, DriveU, reported a 66% increase in its earnings for the fiscal year ended March 2024. The company also achieved profitability during this period.
Humble Mobile Solutions Private Limited, which owns and operates DriveU, reported that the revenue from operations surged to Rs 24.50 crore, from Rs 14.75 crore in FY23 as per its financial statements sourced from the RoC. This rise in earnings was mainly due to an increase in the platform’s revenue.
Established in 2015 by Ashok Shastry and his son Rahm Shastry, DriveU operates in several cities, including Mumbai, Bengaluru, Delhi NCR, Hyderabad, Chennai, and Kolkata, with 24/7 operation centers and a network of driver partners on its platform.
The company’s direct costs rose to Rs 7.55 crore in the year under review from Rs 4.26 crore in the previous year. Additionally, the costs related to employee benefits increased by 21%, reaching Rs 10.44 crore.
The company’s total expenses grew 41.3% YoY from Rs 17.3 crore to Rs 24.5 crore in the same period.
The report also noted a positive PAT of Rs 11.35 lakh in FY24 up from a loss of Rs 2.29 crore in FY23. This improvement was attributed to effective cost control, particularly in finance costs, which saw a reduction from Rs 1.18 crore to Rs 82.11 lakh, and in depreciation and amortization expenses, which were reduced to Rs 23.79 lakh.
Moreover, DriveU’s long-term debt was significantly reduced to Rs 44.90 lakh in FY24 from Rs 6.82 crore in FY23, reflecting the company’s efforts to lower its debt. This reduction in debt, along with efficient management of working capital, led to better cash flow, with net cash from operations becoming positive at Rs 2.18 crore.
DriveU has secured nearly Rs 60 crore in funding and is currently valued at around Rs 260 crore (over $30 million) in its most recent funding round.
The company has set a sales target of Rs 125 crore for FY25.
In March, Cars24 introduced an on-demand driver app named AutoPilot but later decided to discontinue the service, according to reports. PeakXV-backed Park+ also ventured into this market in June. Other key players in this sector include Drivers4Me, Park+, PickMyCar, Namma Driver, and others.
