InDrive to invest $100m in startups across emerging markets

Daba Finance/InDrive to invest $100m in emerging market startups

BREAKING NEWSNovember 17, 2023 at 12:36 PM UTC

InDrive, the bid-based ride-hail platform well-known in Latin America and Asia, has announced the establishment of a new venture and merger and acquisition division called New Ventures. This division is set to invest up to $100 million in startups within emerging markets over the next few years.

The launch of the new venture arm comes four months after InDrive entered its first US market in South Florida. With an eye on achieving profitability, InDrive sees this initiative as an opportunity to diversify its revenue streams.

Andries Smit, Vice President of New Ventures, stated that the company sees promising opportunities in various verticals across its ecosystem. Originating in Russia and now headquartered in the U.S., InDrive aims to target startups in regions where it already operates, including Latin America, the Middle East, Africa, Southeast Asia, and Central Asia.

Points clés à retenir

Though not as popular in Africa compared to counterparts Bolt and Uber, InDrive’s new venture fund comes as good news for the technology industry on the continent given the current realities of the venture funding landscape, marked by declining deals and startup shutdowns. For InDrive’s new venture, the timing is favorable, as current economic conditions have normalized valuations, potentially making investments in startups more lucrative. New Ventures unit will largely provide capital to post-seed/Series A-stage companies that can demonstrate substantial year-over-year growth exceeding 2-3x. The New Ventures unit will largely provide capital to post-seed/Series A-stage companies that can demonstrate substantial year-over-year growth exceeding 2-3x.

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