BRAZIL – 2023/10/02: In this photo illustration, the inDrive logo is seen displayed on a smartphone … [+] screen. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)

SOPA Images/LightRocket via Getty Images

InDrive, the ride-hailing app, has secured a $150 million deal from investors to bolster its product and market expansion plans.

The $150 million investment is from General Catalyst and comes just over a year after a similar deal with the firm, bringing the debt financing to $300 million.

According to inDrive, the new money will be used to expand into new markets and develop new products. It recently launched a financial services product to provide financing for drivers on its app.

“This financing will support our marketing investments across the existing footprint of inDrive and help us with targeted launches in a handful of new countries and in new cities within the existing countries of operations,” Dmitry Sedov, chief financial officer, at inDrive said.

Last year the company entered the US with a tentative launch in Florida where it is slowly building up a user base for its negotiating model for ride-hailing fees. On the app, passengers can negotiate a fee for their trip with their driver, opposed to the set fees typically seen on ride-hailing and taxi apps.

The company was founded in Russia and is now headquartered in the US but it has largely focused on developing markets.

“Securing this financing from General Catalyst empowers us to continue our rapid growth and innovation while maintaining a strong financial position and financial flexibility,” Sedov said.

“This financial structure is designed to support our ambitious plans without introducing additional risk to our operations.”

InDrive stated that it saw a 54% increase in net revenue in 2023 but did not disclose any specific revenue figures.

The company recently expanded into financial services. It rolled out loans and credit cards for drivers in Mexico.

“We’re scaling in Mexico first and considering launching in other geographies, with an initial focus on Latin America,” Sedov said of inDrive’s move into financial services.

Earlier this year, the company’s president said that financial products would bolster its presence in developing markets where its drivers struggle with access to financing through traditional banks.

InDrive also recently unveiled a $100 million investment arm to back ventures in these emerging markets.

Pranav Singhvi, managing director of General Catalyst, said inDrive has a “robust mission that positively impacts communities globally.”

“With the latest financing arrangement, inDrive is poised for further growth in 2024. This strategic financial support will aid inDrive in expanding its service offerings, and strengthening its global presence, all while adhering to its core mission of challenging social injustice and promoting equitable access to mobility services.”