Singapore-based car rental platform Drive.SG has obtained $790,000 or S$1 million for its Series A funding round, TechCrunch reported.
The investment came from Malaysia-based investment holding firm Insas Berhad. Proceds from the round will be deployed towards the startup's expansion into other Asian countries. By the middle of this year, Drive.SG will be bringing the service to Malaysia and the Philippines. Aside from regular car rentals, they will also be adding mini-coaches and limousine services, the report said. An e27 report on January 7, 2013 said that Drive.SG raised S$200,000 for its seed funding round from private investor John Tan who also invested in Chope, Impulseflyer, Payroll Hero and 8 Villages.
Drive.SG, a graduate of the startup incubation program of NUS Enterprise, was established in 2011. There are now 15,000 customers who rely on the online platform to provide them with car rental services from around 50 car rental firms operating in Singapore.
Drive.SG Co-Founder Paul Tan said in a statement, "We aim to bring this same convenience to local residents and travelers in other countries in Asia, while overcoming issues such as language barriers, over-charging or lack of transparency."
Car rental services are in heavy demand in Singapore since it's very costly to get a Certificate of Entitlement or license to own a car there. There are also financing limitations placed by the government on vehicle purchases, making it more difficult to own one. Thus, a car lease is often the preferred option, the report said.
Drive.SG gives local car rental firms a site where they can offer their rental vehicles. Prospective renters, on the other hand, can use the platform to inquire and book rentals in real time. The site also allows renters to look for and compare rental prices. It also shows the sources of the vehicle on the site unlike other global car rental sites, the e27 report said.
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