On demand driver aggregator firm DriveU turns profitable in FY24

Humble Mobile Solutions Private Limited, which owns and operates on-demand driver seeking platform DriveU, has reported 66% growth in its revenue in the fiscal year ending March 2024. At the same time, the Bengaluru-based firm also turned profitable during this period.

DriveU’s revenue from operations spiked to Rs 24.50 crore—a substantial increase from Rs 14.75 crore in FY23, its annual financial statement sourced from the Registrar of Companies show. The growth in revenue was primarily driven by increased platform revenues.

Founded in 2015 by father-son duo Ashok Shastry and Rahm Shastry, DriveU operates across multiple cities, including Mumbai, Bengaluru, Delhi NCR, Hyderabad, Chennai, and Kolkata, with round-the-clock operation centers and a network of driver partners on its platform.

 Despite the revenue growth, the company continued to focus on controlling expenses. Its direct expenses increased to Rs 7.55 crore in FY24 from Rs 4.26 crore in FY23. Furthermore, employee benefit expenses rose by 21%, reaching Rs 10.44 crore. 

To check complete Revenue Breakdown visit thekredible.comView full data

The report also highlighted a positive profit before tax of Rs 11.35 lakh for FY24, a notable improvement from a loss of Rs 2.29 crore in the previous year. This turnaround was the result of effective cost management, especially in areas such as finance costs, which were reduced to Rs 82.11 lakh from Rs 1.18 crore in FY23, and depreciation and amortization expenses, which stood at Rs 23.79 lakh for the year.

 Additionally, DriveU’s long-term borrowings decreased substantially to Rs 44.90 lakh in FY24 from Rs 6.82 crore in FY23, reflecting the company’s efforts to reduce debt. This debt reduction, coupled with efficient management of working capital, led to improved cash flow, with net cash from operations turning positive at Rs 2.18 crore.

 The company has projected sales of Rs 125 crore for FY25.

 According to startup data intelligence platform TheKredible, DriveU has raised nearly Rs 60 crore ($7 million) to date and is valued at around Rs 260 crore (over $30 million) in its last fundraise.

In March, Cars24 launched an on-demand driver app called AutoPilot but later withdrew the service, according to sources. PeakXV-backed Park+ also entered this space in June this year. Other notable players in the sector include Drivers4Me, Driverzz, PickMyCar, and Namma Driver.