Why we invested in LetzRyd at UNLEASH

Why we invested in LetzRyd at UNLEASH

At UNLEASH, we are driven by the mission of investing in visionary founders who are not only solving large-scale problems but are also enabling financial inclusion by creating better earning opportunities and improving access to credit. After backing companies like Ayekart and CredRight, we are excited to announce our recent investment in LetzRyd, a pioneering vehicle leasing and fleet management company that is reshaping the landscape of ride-hailing in India.

The Indian ride-hailing industry has undergone phenomenal growth over the past decade, largely driven by two key players—Ola and Uber. Valued at over $9 billion as of 2023, the sector is projected to grow at a compounded annual growth rate (CAGR) of 15% over the next five years. Yet, this fast-growing industry faces several challenges, and that's where LetzRyd comes in.

Despite rapid expansion, the industry has three major pain points:

  1. Insufficient vehicle supply on platforms: Platforms struggle with not having enough cars to meet the increasing demand, resulting in long wait times and a subpar customer experience.
  2. Drivers’ lack of access to easy capital: Most drivers cannot easily finance vehicle purchases, and those who do face the burden of fixed EMIs, which can lead to significant financial strain.
  3. Drivers’ income uncertainty and limited growth opportunities: Drivers find it hard to achieve income stability, making it challenging for ride-hailing platforms to attract and retain quality drivers.

These issues not only hamper the growth of the platforms but also directly affect the livelihood and financial health of the drivers. LetzRyd’s model addresses all three challenges in a comprehensive manner.

LetzRyd stands at the intersection of the three pillars of the ride-hailing ecosystem—Ride-hailing platforms, Drivers, and Customers—offering a truly disruptive solution that benefits all stakeholders:

  • For ride-hailing platforms, LetzRyd ensures a reliable supply of vehicles with well-maintained cars and trained drivers. This allows platforms to focus on demand generation without worrying about fleet shortages.
  • For drivers, LetzRyd transforms the burdensome vehicle ownership model by converting fixed financial EMIs into a more flexible daily lease structure. This reduces drivers' cash flow stress and helps them generate higher average monthly net income. Most importantly, it provides them a clear, sustainable path to vehicle ownership. With LetzRyd, drivers have a predictable income stream and the opportunity to transition into microentrepreneurs, managing their own fleet of vehicles.
  • For customers, LetzRyd significantly improves the overall ride-hailing experience by reducing wait times, minimising cancellations, and ensuring the availability of high-quality vehicles during peak demand.

At UNLEASH, we invest in solutions that have a real, measurable impact on society. What excites us about LetzRyd is not just the business model but the transformational impact it can have on drivers’ lives. By offering flexible leasing options and making vehicle ownership accessible, LetzRyd increases drivers’ net earnings by ~30-70%, empowering them to take control of their future and become microentrepreneurs.

Why LetzRyd is Poised to Win

We believe LetzRyd is uniquely positioned to succeed in this space for several key reasons:

  1. An experienced, execution-focused team: Founders Tarun, Kushagra, and Sarvagna bring more than 25 years of combined experience in the mobility and ride-hailing space, having held key roles at companies like Zoomcar and Lithium. Their deep industry knowledge and networks across both the supply and demand sides are proving invaluable. In fact, in just 7 months of operations (as of August 2024), LetzRyd has already deployed 150+ cars—and with UNLEASH’s backing, they are on track to deploy over 1,000 cars in the first year alone.
  2. An execution-heavy market: While technology plays a role, this market is more about efficient execution—and the LetzRyd team understands that perfectly. They are laser-focused on key operational aspects like adding cars, driver management, and reducing turnaround times for maintenance, ensuring that every detail is optimized for scale.
  3. A vast and growing market with room for multiple winners: The Indian ride-hailing market is massive and continues to grow. Despite its size, the largest player in the fleet leasing space currently has fewer than 20,000 cars deployed, with others trailing far behind at only 500-600 cars each. With a yearly demand for 250,000 vehicles, LetzRyd is well-positioned to capture a significant share of the market. With the right execution and financing options, there is more than enough space for multiple winners, and LetzRyd is leading the way.

LetzRyd’s vision aligns perfectly with our mission at UNLEASH: to invest in ventures that drive financial inclusion by creating meaningful earning opportunities. By helping drivers access vehicles and empowering them to become microentrepreneurs, LetzRyd not only addresses the needs of the ride-hailing platforms but also elevates the livelihoods of thousands of drivers, most of whom are migrants in metro cities from smaller towns,  and their families.

We are thrilled to support LetzRyd on this journey and are confident that the company is set to play a transformative role in the future of mobility in India. Do reach out in case you want to connect with the founders or us.

Douglas Baryeh

FOUNDER/CEO OF ESMART RIDES

3w

Subject: Unique Investment Opportunity in Esmart Rides - Transforming Transportation in Africa I’m excited to share a prime investment opportunity in Esmart Rides, an innovative electric vehicle (EV) taxi and ride-hailing service enacting change across Africa. Our Vision We plan to introduce 50,000 electric SUVs and MPVs, alongside 15,000 ultrafast solar charging stations and 50,000 rooftop LED screens in 50 cities across 30 countries, promoting sustainable transportation and boosting local economies. Achievements: - Secured $900 million for solar chargers.(15,000 pieces) - Acquired $70 million for rooftop LED screens.(50,000 pieces) - Partnered with three EV manufacturers, with plans to expand. Investment Opportunity: We are raising $50 million in exchange for 5% equity, promising significant growth and returns. We project $16 billion in revenue over six years, with a potential profit of $11 billion. Why Invest? - Potential returns of $550 million from your 5% stake in six years. - Opportunity to capitalize on a rapidly growing industry. I would love to discuss this opportunity further and explore potential collaboration. Warm regards, Douglas Baryeh Founder & CEO, Esmart Rides 233541758595 / douglasbaryeh@gmail.com

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Ruchi Rathor

🚀 FinTech Innovator | White Label Payment Systems | Cross Border Payments | Payment Orchestration | 🎤 TEDx Speaker | Women Empowerment | Influencer Leadership

2mo

Visionary founders redefining mobility. Financial inclusion through innovative leasing solutions. Abhishek Kumar

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