Prorata, a Bangalore-based start-up, has announced a strategic investment from Hindustan Media Ventures Limited (HMVL), further accelerating the growth of India’s first fractional car ownership platform. The funding underscores the company’s innovative approach to revolutionizing how Indians experience premium, luxury, and off-road vehicles.
Revolutionizing Car Ownership in India
Founded by visionary entrepreneur Sanjeev Kumar Jain, Prorata is revolutionizing car ownership for India’s middle and upper-middle class. By introducing a cost-effective co-ownership model, Prorata enables customers to share premium vehicles with nearby residents for leisure and lifestyle purposes. This pioneering approach not only upgrades lifestyles but also makes luxury car ownership more accessible.
How Prorata Works
Prorata’s co-ownership model divides a vehicle into 12 tickets of ownership, with each ticket representing 8.33% ownership. Co-owners can purchase up to three tickets, granting them access to the car for 30 days per ticket annually over a five-year period. Through a user-friendly mobile app, owners can book their usage days seamlessly. Cars are delivered with a full tank of fuel by professional drivers and are picked up after use, ensuring convenience. At the end of the five-year period, the car is sold via a bidding process on the Prorata app, with the resale value distributed among the co-owners.
Addressing Key Use Cases
Prorata’s model addresses diverse customer needs, including:
- Urban professionals visiting hometowns within a 200-400 km radius
- NRIs returning to India occasionally
- Off-roading and sports car enthusiasts seeking unique experiences
- A 7-seater car for occasional family outings.
As highlighted by Sanjeev Jain during Shark Tank India Season 3 and in a podcast with Ayushman Pandita, Prorata is creating a new paradigm in car ownership by catering to these distinct use cases.
Comprehensive Services and Revenue Model
Prorata’s revenue model revolves around an annual maintenance charge (AMC) per ticket. This fee encompasses a range of services, including:
- Car pick-up and drop-off
- Insurance premiums and claims management
- Regular servicing and maintenance
- Fair cost allocation to co-owners, ensuring equitable use of the vehicle.
Popular Car Segments
Prorata’s innovative platform has identified key demand areas:
- Off-roading: Mahindra Thar, Jeep Wrangler, Land Rover Defender
- Seven-seaters: Mahindra XUV700, Toyota Innova Hycross, Toyota Fortuner
- Luxury vehicles: Mercedes E Class, Audi Q5, BMW X7, Range Rover Velar
- Sports cars: Mini Cooper, Porsche 911, Mercedes CLE Cabriolet
Ambitious Plans for Expansion
With support from HMVL, Prorata is poised for national growth. The company plans to expand operations into major cities, including Mumbai, Delhi NCR, Hyderabad, Chennai, Kolkata, Chandigarh, Pune, Jaipur, Ahmedabad, and Surat. Additionally, Prorata aims to introduce more premium car models and enhance its mobile app to deliver an even better user experience.
Driving the Future of Car Ownership
With its innovative model, customer-centric approach, and robust investor support, Prorata is on track to create a new category in the automotive industry and elevate the car ownership experience for Indians nationwide.
Sanjeev Jain, Founder of Prorata, shared his enthusiasm about the partnership with HMVL, stating: “We are thrilled to collaborate with the HT Media Group, whose unparalleled market reach will help us build a strong and enduring brand. This partnership aligns perfectly with our mission to upgrade lifestyles and redefine car ownership for millions of Indians.”
Anirudh Singhal, Head of Strategic Investments at HMVL said, “Prorata's innovative fractional ownership model aims to revolutionize the automotive ownership in India. Prorata is addressing lifestyle aspirations of Indians by enabling them to drive premium cars affordably. We are excited to partner with Sanjeev and his team to amplify this vision, leveraging their model to make luxury car experiences attainable for a wider audience. Together, we aim to scale this innovation and redefine the luxury car ownership in India.”
For more information, visit Prorata's official website at https://www.proratacar.com/
No VCCircle journalist was involved in the creation/production of this content.