NGA Technologies in talks with private equity firms, VCs to raise $5 million

New Delhi-based NGA Technologies, which owns autorickshaw-hailing app AUTOnCAB, is talks with a clutch of private equity (PE) and venture capital firms to raise $5 million (about ₹33 crore).

The company is looking to raise the ‘Series A’ funding (first institutional funding) by January.

“Apart from PEs and VC firms, the talks are on with a number of High Networth Individuals (HNIs). The funds could also be raised from a consortium of lenders,” Co-founder and Chief Executive Officer Vinti Doshi told BusinessLine . “I can’t disclose the names as we are yet to finalise the funding,” she said.

AUTOnCAB was launched in 2014 by entrepreneurs Vinti Doshi, Alok Sawhney and Surendra Goel to enable users hail an autorickshaw using the mobile app.

The app, which works on both Android and iOS, detects the user’s location and connects him with the nearest available driver.

This would be the third fund-raising for the company. In 2014, it had raised about $400,000 from promoters, followed by a $600,000 from MANN Ventures and individual investors early this year.

NGA Technologies will use the funds to expand its availability to additional 50 cities by April 2016, from the present six cities. At present, AUTOnCAB is operational across Gurgaon, Noida, Chandigarh, Jaipur, Kota and Ghaziabad.

“The foray would be mainly into Tier-II and -III cities, while there are plans to enter a couple of metros too,” Doshi added.

NGA Technologies, which had acquired hyperlocal grocery delivery start-up BigZop September for an undisclosed amount, is also looking at acquisitions and strategic partnerships.

“We are looking at a gamut or companies, such as aggregators and firms associated with autorickshaw drivers and also firms on the logistic side,” Doshi said, without disclosing any names.

COMMENT NOW