Namma Yatri, supported by Juspay, sets sights on small towns after successful fundraising efforts

Namma Yatri, a ride-hailing service backed by Juspay, is gearing up for a major expansion in tier-2 and tier-3 towns across India. With a fresh capital infusion on the horizon, the company is looking to raise funds to invest in product development, research, and expansion plans. Chief Growth Officer Shan MS shared with Mint that the focus will be on increasing penetration in tier-2 cities to provide convenience for customers and maximize earnings for drivers.

The company, which operates on a no-commission business model, aims to strengthen its presence in over 15 tier-2 cities in South India, including Mangalore, Kottayam, Madurai, and Salem. Venturing beyond metro cities is seen as a natural progression for Namma Yatri, as it eyes a significant share of India’s ride-hailing market.

Namma Yatri was launched in November 2022 and operates on the Beckn Protocol, a government-backed open-source protocol for economic transactions. The company’s leadership, including Shan and Chief Product Officer Magizhan Selvan, is focused on realizing their vision by maintaining independence through the recent divestment as Moving Tech Innovations Private Limited.

With a subscription-based model for drivers, Namma Yatri has completed millions of trips since its inception. However, the company is open to rethinking its approach in non-metro cities to cater to the unique driver and consumer behavior in those areas. Specialized features and services, such as shared auto rides and intercity rentals, are being considered to cater to the needs of customers in smaller towns.

Overall, Namma Yatri has achieved operational profitability in Bengaluru and is on a path towards company-wide profitability. The company’s expansion plans and innovative approach to the ride-hailing market are set to make waves in the industry.