PumPumPum: Revolutionising Used Car Leasing

PumPumPum, a burgeoning start-up in the realm of used car leasing, has transitioned into a comprehensive B2B and B2B2C provider of corporate mobility solutions. The company has successfully secured Rs 18 crore in a pre-Series A funding round, which was led by LC Nueva, with contributions from Mufin Green and Anupam Finserv.

Based in Gurugram, PumPumPum had previously raised Rs 2 crore in a funding round led by Inflection Point Ventures (IPV) in March 2024. The newly acquired funds will be directed towards advancing their asset-light fintech platform, broadening B2B2C employee leasing partnerships, strengthening relationships with OEMs and dealers across new, used, and EV segments, as well as enhancing their presence in metropolitan areas and scaling up technology, sales, and customer success.

Goals of PumPumPum

Co-founded by Tarun Lawadia and Sameer Kalra, PumPumPum aspires to modernise passenger vehicle leasing in India, providing options across new, used, and electric vehicles. The company caters to a range of clients including corporates, SMEs, MSMEs, and fleet operators in major metropolitan markets, including Delhi NCR, Bengaluru, Hyderabad, Mumbai, and Chennai.

Innovative Fintech Solutions

PumPumPum’s proprietary fintech platform empowers banks and NBFCs to deploy capital effortlessly through technological solutions. The company oversees the entire asset lifecycle, offering comprehensive vehicle health monitoring, maintenance services, and a robust redeployment and resale infrastructure. This effectively mitigates the risks of defaults that are often associated with conventional leasing firms.

Operational Expertise and Growth

Over the past six years, the company claims to have developed substantial operational expertise in employee leasing and business vehicle solutions. With an impressive growth rate of 70% year-on-year, PumPumPum currently oversees more than 1,000 vehicles and has surpassed Rs 100 crore in Assets Under Management (AUM).

Market Potential

Research indicates that leasing penetration in India is below 5%, in stark contrast to the 30% seen in more developed global markets. PumPumPum offers certified pre-owned vehicles through a monthly subscription model, which encompasses all vehicle-related aspects such as maintenance, repairs, and insurance. The aim is to provide costs that are comparable to, or lower than, traditional vehicle ownership.

Technological Innovation

The platform utilises IoT devices within vehicles to gather data on driving habits and vehicle health. This facilitates predictive maintenance and allows PumPumPum to offer advanced features via their app, including real-time credit evaluations.