ORIX injects $25M into OAIS

Date: 20 JAN 2018posted by Car Rentaledited by WinX

The current self-driving car rental market in India has been dominated be startup companies. But they will be facing growing competition from a major Japanese player. Orix Corporation Japan has injected an additional $25 million USD into Orix Auto Infrastructure Services Limited (OAIS) to accelerate growth in its existing businesses, expansion of its self-driving car rentals vertical - MyChoize and the launch of an affordable housing finance company in India. The company plans to capture 10 percent market share within a year. Orix is the world's fourth largest consumer finance company, Japan's largest leasing company and second largest self-driving company and has over $100 billion assets under management. The initial focus will be on self-driving car rental business. Currently, startups such as Zoomcar, Revv, Drivezy and Vola cars are dominating the self-drive car rental market.

"Self-drive care rental space is currently dominated by startups in India and we are now to make an entry into this space on strong footing" said Sandeep Gambhir, CEO of OAIS. He added, Orix Corporation Japan does not believe in losing finances by discount pricing, a method strongly utilized by startups. As part of their strategy, about 18 months ago, the company started MyChoize, a self-driving car rental vertical in India to test the market before making major investments. "Our differentiating factor will not be pricing (like startups do), rather we will differentiate ourselves by service," explained Gambhir. MyChoize already has 300 cars across 10 cities and injections will allow the fleet to 1000 vehicles by the end of 2018 and operate in an additional five cities. Over the last few years OAIS has demonstrated a growth in revenue and profitability. Gambhir was extremely confident that the same success story would be replicated after the injection and the commitment and additional support from the parent company will allow the company to achieve their medium and long term goals in India.

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