A little over a year ago, we released one of the first deep dives into India's Open Network for Digital Commerce (ONDC), and then a few months later followed it up with a dedicated platform launch with Mr. Nandan Nilekani's FIDE (Foundation for Interoperability in Digital Economy) and ONDC. Since then, a quiet revolution has taken place in the ride-hailing space, a revolution built on ONDC. It's not marked by the honking of horns or the roar of engines but by the gentle thrum of a new approach to urban mobility. This paradigm shift is led by India’s first open-source mobility application, Namma Yatri.
Namma Yatri is imagining and building a world where the gig economy doesn't mean precarity, where open-source isn't just for software, and where urban mobility is as fluid as the data that powers it.
Namma Yatri posits a provocative question: Traditional ride-hailing apps brought cars to our fingertips, turned smartphones into taxi stands, and reshaped city landscapes.
But what if that was just the opening act?
At Antler, we're constantly on the lookout for companies that don't just iterate, but innovate at a fundamental level. Namma Yatri fits this bill perfectly. It's a solution born from the unique challenges and opportunities present in India's urban landscape but with potential implications for mobility worldwide. And we’re excited to invest in the next part of their journey. Here’s why we chose to back them.
Subscriptions: Rethinking the Ride-Hailing Revenue Model
Namma Yatri's most striking innovation is its subscription-based model for drivers. In an industry accustomed to commission-based structures, this approach is unique. Drivers pay a fixed daily or monthly fee (about $0.3), rather than a percentage of each fare.
For drivers, it means predictability and potentially higher earnings. The fixed fee structure allows them to keep a larger portion of their fares, especially during peak hours. This model has resonated strongly with drivers, as evidenced by the impressive best in industry driver retention rate.
For riders, the benefits are equally significant. The subscription model incentivizes drivers to accept more rides, reducing wait times and cancellations. This improved reliability is reflected in Namma Yatri's strong six-month customer retention rate, a strong indicator of user satisfaction in the competitive ride-hailing market.
The Open-Source Advantage
Namma Yatri's innovation extends beyond its business model to its technological foundation. Built on ONDC, an open commerce network, Namma Yatri is positioned at the forefront of interoperable urban transit solutions.
This approach closely aligns with the vision of tech industry leaders like Mr. Nandan Nilekani, co-founder of Infosys and founding chairman of UIDAI, who has long advocated for open, interoperable systems to drive digital innovation in India.
The approach has already yielded dividends for Namma Yatri and its users through seamless integration with other mobility services like metros, paving the way for truly integrated urban travel. It also facilitates collaborative innovation with government bodies and other stakeholders.
The open-source nature of the application translates to lower technology costs. Namma Yatri's fully loaded total cost per ride is significantly lower compared to its global competitors. This cost efficiency is a key factor in the application’s near-breakeven unit economics, even at this early stage.
India On The Move: Market Opportunity and Traction
The urban mobility market in India is massive and growing, with a current size of over $100 billion and expected to double in the next 8-10 years. Digital penetration in this market is still only about 5%, indicating substantial room for growth.
Namma Yatri has already made significant inroads without resorting to traditional growth hacks like performance marketing and cashbacks. With over 430,000 registered drivers, 7 million+ registered users, the application is showing impressive growth. Since the launch of monetization 6 months ago, the annualsied revenue run rate is growing at a solid pace, indication strong market traction.
The Team Behind the Vision
Namma Yatri's success is driven by a team with deep expertise in technology and business scaling. Incubated within Juspay, a leading payments company in India, Namma Yatri benefits from a decade of experience in building reliable, scalable technology infrastructure.
The leadership team, including Shan M S and Magizhan Selvan, brings a wealth of experience in business strategy, growth, and product development. Shan, with his background as Chief Growth Officer at Juspay and previous roles at Cult.fit, Bounce and Kearney, brings valuable insights from both the technology and mobility sectors. Magizhan, with his eight-year tenure at Juspay, most recently as Chief Product Officer, provides deep expertise in product development and engineering.
Their combined experience in scaling businesses and building innovative products positions Namma Yatri well for future growth and expansion beyond its current markets.
Beyond Ride-Hailing: One Stop for Urban Mobility
While Namma Yatri started with a focus on auto-rickshaws, its vision extends far beyond this initial offering. The application is actively expanding to include four-wheelers and two-wheelers, significantly broadening its addressable market.
Moreover, Namma Yatri is not just about point-to-point transportation. Its integration with other modes of public transport, such as metro rail and buses, positions it as a comprehensive urban mobility solution. This multi-modal approach not only enhances its value proposition for users but also opens up new revenue streams and partnership opportunities.
The application's open architecture allows for innovative features beyond basic ride-hailing. For instance, Namma Yatri is exploring ways to incorporate financial services for drivers, loyalty programs for riders, and data analytics capabilities for urban planners.
The Road Ahead For Namma Yatri
Our investment in Namma Yatri represents more than just backing a promising startup; it's about supporting a vision for more equitable, efficient, and sustainable urban mobility. As cities worldwide grapple with the challenges of urbanization and environmental sustainability, solutions like Namma Yatri offer a glimpse into the future of urban transportation.
Commenting on the investment, Nitin Sharma, Partner at Antler, added, “In Namma Yatri, we see a rare combination of disruptive innovation and mass-scale impact. It's not just about reimagining urban mobility; it's about empowering drivers, delighting customers, and leveraging India's digital public infrastructure to create a more equitable ecosystem. This is the kind of moonshot thinking that can transform entire industries and improve millions of lives.”
With its innovative model and strong team, Namma Yatri is well-positioned to not just participate in the future of urban mobility but to shape it.
In the grand tapestry of urban life, mobility is a crucial thread. With Namma Yatri, we have a chance to weave a new pattern – one that benefits drivers, delights customers, and builds stronger, more connected communities. We're thrilled to be part of Namma Yatri's journey to change how people move in cities. The ride has just begun, and the destination looks promising indeed.
