Fosun and Stellaris VP back last mile shuttle service Loca Rides
For commuters, last-mile connectivity is still one of the major challenges in India for a long time. However, it's changing with the emergence of startups such as Rapido, Vogo, Bounce and Yulu among a few others.
While last-mile connectivity on four or two wheels is inexpensive, little known Loca Rides is claiming to provide cab option cheaper than a bike ride. The solution appears to have impressed the early-stage investors as well.
The Bengaluru-based startup, mainly for metro passengers, has picked up $1 million in its early investment round led by Fosun RZ Capital and Stellaris Venture Partners.
With the external round, Loca will accelerate the expansion of its fleet in Bengaluru and further establish technical and operational teams. According to an update by Fosun, the firm is also planning to expand operations in more cities like NCR by early next year.
Available at metro stations such as Indiranagar Metro, Yelachenahalli, Mysore Road, and Vijaynagar, Loca has a travelling fleet of small passenger cars and vans, which operates from fixed pick/drop points or just a minute walk away.
Founded by Gautam Patil and Krishnakumar Ramachandran, the firm claims to have developed an algorithm to shorten the waiting and walking time between the user reservation and the vehicle to less than 5 minutes. With a little over 5,000 users on the platform, Loca also offers cost-saving pass and wallet for the convenience of daily customers.
Early and growth-stage venture capital firm and the lead investor Fosun had made several notable investments in India in its two-and-half years of operations in the country.
Led by Tez Kapoor, Fosun has backed tech startups like ixigo, Delhivery, LetsTransport , Kissht, Mylo, Kredily , Headfone among others. The Beijing-headquartered firm is also is ramping up its TMT investment team in India.
Meanwhile, Stellaris has been bullish about the opportunity in passenger transportation space. It had backed Vogo in the past.