Memo: ENVI (An on-demand electric cab company)

Introduction/Executive Summary

Currently, the market has a duopoly of Uber and Ola in India for hailing an on-demand cab. Ideally,
they should have solved the problem of a cab at an affordable price point. But today, cab drivers
declined the trip in the name of online payment or not going out of their theoretical boundary
resulting in a lot of last-minute cancellations of trips causing a problem for the customer.

The team has built confidence in its area of operation. Their driver can’t cancel a trip leading to
timely arrival and completion of the trip with the highest customer satisfaction. As their fleet is
EVs so they save a lot of carbon emissions as well.

Started in Bangalore, India, and Growing very rapidly.

They are growing exponentially QoQ.

The team is very well experienced having cumulative work experience of more than 50 years in
various companies like Google, Target, Memphis, HP, Dell Etc.

Their vision is the sustainable, carbon-neutral, on-demand cab.

Market

There is proven and large market size and growth as there are existing players like Uber and Ola.

The online taxi services market in India was valued at approx. $410M in FY 2020 and is expected to
expand at a compound annual growth rate (CAGR) of ~13% during the 2021-2025 period, to reach
a value of approx. $740M by 2025.

As the aggregators are failing to provide even average services to the user so there exists a big gap
in customer expectation and service provided. Aggregators are unable to control the security of
users, pricing, forced cancellation by drivers, and quality of service leading to customer
dissatisfaction.

The incumbent should focus on customer satisfaction at the right price with customer security.

Competition

Existing players like Uber, Ola, etc, make the market very competitive with deep pockets from
global VCs.

A significant no. of customers are going away from aggregators due to various reasons which
include, security, affordability, cab driver behavior, and service quality.

Solving these issues should differentiate the incumbent.

Product

An on-demand rented electric cab fleet should solve this problem. Asset light model where ENVI
will pay a part of the income generated by these cabs to its owners and have full control over
salaried, incentivized drivers. Cabs will be charged at designated stations.

As the per km. cost for an electric car is significantly less, so OPEX is sustainable and CAPEX is
bourn by car owners.

The product is already in the market and has significant traction, and growing exponentially QoQ.

The starting location Is Bengaluru, India, and post-funding will expand to other cities.

USP

Best Pricing in the industry

Quick ROIC

Customer chooses driver

No Driver cancellation

No surge pricing or surge charges

Best Traveling Experience

Safest Taxi Service

Use sustainable power to charge cars

Sales & Distribution

Targeting millennials in IT and start-ups hub like Bengaluru, Delhi NCR, Mumbai, etc. GTM is
already showing traction.

In FY 2022, the expected revenue is $3M, in FY 2023, the same is projected to be $61M.

Metrics

Revenue:

Oct, 20- Feb, 21 INR 6,70,566

Mar, 21 - Feb, 22 INR 2,06,29,741(30x)

Arp,22 – Dec, 22 INR 41,68,54,741(20x)

User Growth:

Total user growth from Oct, 20 to Feb, 22 is from zero to 11,000.

Repeat users: 60%

Total Trips: 23000+

CO2 Saved: 23000+kgs

Team

N. Sanjeev Kumar, CEO, and Founder

Ex, Cognigent, and Target, more than 19 years of experience, first-generation entrepreneur. Has
a deep understanding of the market drivers with impeccable leadership skills.

Ashok Prasad, Director Ops

Ex, Google, Mphasis, Wipro. Very experienced and ops veteran.

Mahesh Tiwari, Director BD

Ex, Dell, HP. Have a good understanding of customer behavior.

Raghu VT, CTO

Ex, Wipro, Samsung Research. Technologically experienced and have a sound knowledge to scale.

Deal

The start-up is looking for a $3.8M Pre-series-A at a valuation of around $20M

Data is not available for any other who is investing.

Angel of around $85K in Dec, 20 from unknown investors

Pre-seed round of around $260K in Dec, 21 unknown investors

Seed round of around $0.525M in Feb 2022 unknown investors

Exit: Exit possibilities are very good as big players exist in the market. So, either further round will
help ENVI grow to a unicorn or can get acquired by established aggregators.