Mobility startups have been bearing the brunt of the pandemic and for some mergers and acquisitions are the one manner ahead. One such agency is Bengaluru-based automobile and bike rental agency Drivezy. The corporate is in superior phases to get acquired by Japanese two-wheeler maker Yamaha, stated two individuals conscious of the main points of the deal.
“Yamaha has been in talks to accumulate Drivezy for the previous six months and it had given the phrases for the acquisition early this month,” stated one of many individuals requesting anonymity. “The dimensions of the deal is more likely to be within the vary of $40-45 million.”
If the deal goes via, it could be the second consolidation within the mobility house. Toyota-backed Shuttl can be exploring merger and acquisition offers. On Monday, Entrackr had reported about Shuttl trying to wind up operations.
Based on sources, Drivezy would proceed to function as an unbiased entity after the acquisition. As a part of the deal, Drivezy’s co-founders will spearhead its operation in India and would additionally broaden footprints to the African and MENA areas.
Queries despatched to Yamaha didn’t elicit any fast response whereas Drivezy’s co-founder and CEO declined to supply remark for the story.
Yamaha was in talks with Drivezy for funding for about 18 months, per sources. “The funding talks which was slated to worth Drivezy over $125 million didn’t materialise because of the pandemic,” stated the second supply who additionally wished to not be named. “After falling out of the funding prospect, Yamaha proposed an acquisition supply to Drivezy with a 60% haircut on the unique funding proposal.”
Based on sources, the deal is more likely to finalize in a month.
“The deal isn’t thrilling for Drivezy’s traders as they don’t have any upside, however they’re more likely to get well no matter they invested within the firm,” stated the one who is quoted in the beginning of the story.
As of now, Drivezy has mopped up near $30 million throughout three institutional rounds. Its lead backers embody Das Capital, Y Combinator, and White Unicorn Ventures amongst others. It’s price noting that the corporate was additionally in talks with a number of traders together with SoftBank and oil behemoth Shell.
Nonetheless, these talks didn’t culminate right into a deal for unknown causes.
“About $30 million would go on to Drivezy’s traders and the remaining $10-15 million will likely be used to eliminate debt and different liabilities,” stated the second individual.
Based in 2015 by Ashwarya Pratap Singh, Hemant Kumar Sah, Vasant Verma, Abhishek Mahajan, and Amit Sahu, Drivezy affords peer-to-peer bike and car-sharing providers. It was one of many early corporations to lift funds via an initial coin offering (ICO).