"We Are Targeting 30-35% Revenue Growth In FY25": Ashok Vashist, WTicabs

BW Auto World spoke to the Founder & CEO at Wise Travel India (WTicabs), Ashok Vashist about their future plans and company's growth in the previous financial year.

Read the excerpts below:

Q. What's your outlook on the car rental segment and can you please give us a brief overview of WTicabs?

WTicabs, also known as Wise Travel India, embarked on its journey in 2009 with a vision to transform urban mobility across India. Founded with the aim to provide efficient workplace commute solutions for corporates, WTicabs quickly established itself as a leader in the field of corporate car rentals & employee transportation. Over the years, the company expanded its footprint across major Indian cities, broadened its service portfolio through strategic acquisitions, and earned international acclaim as a leader in ground transport. Committed to sustainability, we have integrated electric vehicles into our fleet and ventured into tier 2, 3, and 4 cities. In 2023, the company marked its international debut in Dubai, underlining its commitment to innovation, customer service, and a greener future for mobility.

The Indian car rental industry is a behemoth, valued at a staggering Rs. 375 billion and poised for phenomenal growth. WTicabs stands at the forefront of this exciting market, primed to capitalise on the projected 27 per cent surge over the next 3-5 years. We operate within the organised segment, expected to outpace the unorganised market by a staggering margin, growing at 35 per cent in volume and 46 per cent in value terms over the next five years.

Q. Can you provide details on the current size of WTicabs' fleet?

As of now, WTicabs has a fleet of over 8000 vehicles operating across India. Approximately, 7-9 per cent of this fleet consists of electric vehicles (EVs), indicating a growing emphasis on sustainability and eco-friendly transportation solutions within the company.

In the employee transportation sector, there is a notable increase in demand for EV sedans. This trend suggests that companies and organisations are increasingly adopting sustainable transportation solutions for their workforce. EV sedans offer benefits such as reduced emissions, lower operating costs, and aligning with corporate sustainability goals.

In the spot car rental sector, there is a growing demand for specific EV models like the BYD and MG ZS. This trend highlights a broader consumer shift towards sustainability and eco-friendly transportation options, even in short-term rental scenarios. Consumers are actively seeking out EV options when renting cars for various purposes, indicating a preference for environmentally conscious choices.

Q. What are your expansion plans, and how does the company plan to fund them?

We aim to strengthen our foothold in Tier 2 and Tier 3 cities, which represent significant growth opportunities. By expanding its operations in these cities, the company can tap into underserved markets, increase its customer base, and diversify its revenue streams.

The company is also aiming to expand its operations globally and be the first Indian mobility company to go global. We have already established its presence in Dubai. Following this initial step, the company is targeting Saudi Arabia as its next destination. In the coming six months, we intend to further expand its reach into the Far East and explore opportunities in a couple of additional countries. The company plans to invest in sustainability initiatives, which may include expanding its fleet of electric vehicles (EVs), implementing eco-friendly practices in its operations, and promoting environmentally conscious transportation solutions.

The company raised capital through its initial public offering (IPO) on the NSE Emerge Platform. The funds generated from the IPO will be allocated towards financing various expansion initiatives, including entering new markets, expanding the fleet, and investing in sustainability measures.

WTicabs will also leverage its internal accruals, which include profits generated from its existing operations. These funds can be reinvested into the business to support expansion efforts, without relying solely on external financing.

Q. How does WTicabs differentiate itself from other cab service providers, and what would you say is its unique selling proposition?

WTicabs differentiates itself from other cab service providers primarily through its focus on providing premium B2B (business-to-business) cab solutions tailored to the specific needs of its clients. The company's unique selling proposition lies in its ability to offer bespoke transportation solutions at affordable prices. We cater specifically to business clients, offering a higher level of service tailored to meet their unique requirements. This might include corporate travel management, dedicated account managers, priority booking options, and customisable invoicing solutions.

Rather than offering a one-size-fits-all approach, we take the time to understand each client's needs and preferences, crafting customised transportation solutions accordingly. This could involve specialised routes, vehicle preferences, scheduling flexibility, and other personalised services.

Q. Can you provide insights into WTicabs' recent IPO launch in February and its expansion into the UAE market?

WTicabs' recent IPO launch on the NSE Emerge Platform on February 19th, 2024, marked a significant milestone for the company. The IPO garnered substantial investor interest, with a subscription rate of 148 times, indicating strong confidence in WTicabs' fundamentals and growth prospects. This robust response from investors reflects positively on the company's reputation and potential for expansion.

The company's expansion plans in the UAE encompass three key segments: Self-Drive, Leasing and Subscription and Passenger Transport. By expanding into the UAE market and diversifying its offerings, we aim to capitalise on the growing demand for mobility services in the region. This strategic expansion aligns with the company's vision of providing innovative and holistic transportation solutions to customers while driving growth and value creation.

Q. What are your future plans and how much revenue are you looking to achieve in FY25 and quarter? 

WTicabs’ future plans are consolidating base in Tier 2/3 Cities, spreading wings in far east countries, and expanding the EV fleet and focusing on sustainability. We are targeting a revenue growth of 30-35 per cent in FY25 compared to the previous fiscal year. This ambitious goal reflects the company's confidence in its business model, market opportunities, and expansion strategies. By executing its growth plans effectively, we aims to generate substantial revenue and enhance shareholder value in FY25.

Q. Are there any upcoming tie-ups or collaborations with corporates or companies that you are currently pursuing?

The company anticipates closing approximately 20 corporate clients within the first quarter of the current financial year. These partnerships are expected to contribute significantly to WTicabs' business expansion and revenue generation.