Gaurav Aggarwal, chief executive of outstation car rental startup Savaari.com is too shy to speak of his uncommon achievement—turning profitable. A first in the company’s 13-year history.
“We went out to raise money in 2015, but couldn’t,” Aggarwal recalls. “Since [cab aggregators] Ola/Uber had just received funding from [Japanese conglomerate] SoftBank, the market was pretty much written off from a VC perspective.”
With its back against the wall and cash reserves dwindling, Savaari was forced to strategise and make sense of its unit economics. It exited the airport transfer and rental segments in 2014, solely focussing on intercity cab transport.