Co-own Cars
Through App
Season 3 Episode 45
| Brand | Proratacar |
| Company Name | Prorata Technologies Pvt. Ltd. |
| Founders | Sanjeev Kumar Jain |
| Original Ask | 1 crore for 2% equity at the valuation of Rs. 50 crores |
| Deal | 50 lakhs for 10% equity at the valuation of Rs. 5 crores and 50 lakhs debt at 14% interest |
About the Product
In Prorata, groups of 4 to 12 co-owners are formed within a 10 KM locality, ensuring convenience and accessibility for all participants. Individuals can purchase 1 to 3 tickets out of the 12 available, allowing them to partially own the car and enjoy its benefits. Through the Prorata app, users can seamlessly reserve dates for car usage, providing flexibility and control over their ownership experience. Co-owners join a trusted community of users, fostering a sense of reliability and security in the ownership process.
Upon usage, co-owners receive a full tank car delivered to their doorstep, eliminating the hassle of refueling. The vehicles are newly purchased from the showroom, ensuring quality and reliability throughout the ownership period. At the end of the 5-year ownership term, co-owners receive their share of the car’s resale value, maximizing returns on their investment. With Prorata, there are no ongoing loans or EMIs, offering a one-time investment opportunity for individuals seeking car ownership without financial burdens. Prorata takes care of all service, maintenance, and insurance requirements for the vehicle, ensuring a hassle-free ownership experience for all co-owners.
Founders & their story
- Sanjeev Kumar Jain
Luxury cars often pose affordability challenges for many individuals, and even those who can afford them may not fully utilize them. Rental car options in India are often pricey and fail to meet quality expectations. Enter Prorata, a fractional car ownership platform where users can co-own their dream car by investing just 8.33% of the total cost. The Prorata App employs algorithms to connect like-minded individuals nearby, forming a community of co-owners who collectively share ownership of a brand new car. This asset-light model has garnered over 2 lakh app downloads. In a country with 25 crore households, where only 2 crore own a car, and 95% of them have cars valued at under 10 lakhs, Prorata offers an innovative solution to access luxury cars without the burden of high taxes. Each ticket purchased provides the customer with an 8.33% share in the registered LLP entity and grants 30 days of usage credit per year. Over a span of 5 years, each co-owner gets to use the car for 150 days before it is sold, with proceeds distributed among co-owners. Additionally, an annual maintenance fee of 10% of the car’s cost is required from each co-owner. A nominal community access fee of Rs 99 grants access to co-owner benefits, attracting over 10,000 subscribers in the past 6-7 months. Co-owners can conveniently reserve slots using a one-year calendar, with restrictions on reservations and cancellations to ensure fair usage. Showroom integration with 4-5 locations enhances accessibility for potential co-owners. Prorata successfully raised 1 crore in June 2022 at a valuation floor of 10 crores, demonstrating investor confidence in its unique business model.
About the company
Prorata stands at the forefront of innovation in the automotive industry, offering a unique solution to the challenges of car ownership in India. Founded on the principle of democratizing access to luxury and premium vehicles, Prorata redefines traditional car ownership models with its fractional ownership platform. The concept of fractional car ownership is revolutionary in a market where luxury cars remain out of reach for many due to prohibitive costs and high taxes. Prorata bridges this gap by enabling individuals to co-own their dream car for a fraction of the total cost. Through the Prorata app, users can connect with like-minded individuals in their community to form co-owner groups and collectively own a brand-new vehicle.
Prorata’s asset-light model offers a seamless and cost-effective way for individuals to enjoy the benefits of car ownership without the financial burden of purchasing a vehicle outright. By paying just 8.33% of the total car cost, co-owners gain access to premium vehicles that would otherwise be beyond their reach. The Prorata app serves as a platform for co-owners to manage their shared ownership, including scheduling usage, making payments, and coordinating maintenance. With over 2 lakh app downloads and a rapidly growing user base, Prorata is revolutionizing the way people think about car ownership in India. Beyond its innovative business model, Prorata is committed to providing exceptional customer experiences and ensuring transparency and trust among its co-owner communities. With a focus on accessibility, affordability, and convenience, Prorata is empowering individuals to realize their dreams of owning and experiencing luxury cars without the associated financial burden.
Revenue
10,000 people have paid the community access fees in the last 6-7 months. This is a pre revenue company.
Founders’ Ask
1 crore for 2% equity at the valuation of Rs. 50 crores.
Offers
Anupam and Peyush’s offer: 50 lakhs for 10% equity at the valuation of Rs. 5 crores and 50 lakhs debt at 14% interest.
Final Deal
Anupam and Peyush: 50 lakhs for 10% equity at the valuation of Rs. 5 crores and 50 lakhs debt at 14% interest.