Fast Track Pvt Ltd., which runs cab services, is planning to raise about $50 million from investors by diluting the promoters’ stake, a top company official said. “The money will be deployed for expanding operations and to take on cab aggregators such as Ola and Uber,” said M. Prabhu, chairman, Fast Track.
Stake dilution
“We are not funded like them (Ola and Uber). We are planning to dilute our stake by 51-60% to meet our ambitious growth. Even, if we get 50% of the valuation, it will be sufficient,” he said.
Company president and managing director R.C. Ambigapathy said: “We have now decided to explore raising funds from investors. We have started doing due diligence and very soon we will take a call.”
“After the entry of foreign aggregators, around 25 companies in Tamil Nadu alone have vanished. Previously, we were growing at 30-70% per month, now it is reduced to 5-15%. We managed to survive, due to brand loyalty and customer service. Still, we continue to hold 50% market share in Tamil Nadu, Mr. Prabhu said.
Currently, the company has presence in Tamil Nadu, Bengaluru, Vijayawada and Thiruvananthapuram and plans are on to enter west and rest of India soon. In Tamil Nadu, it has about 15,000 vehicles and 500 more vehicles will be inducted for outstation car rental service.
To grab the market share from the two aggregators, Fast Track announced it will not charge any commission from drivers. Besides, Fast Track has announced 60% discount on all app bookings for its customers coming into Chennai through the airport and railway station.
