- Founder/Owner: Sanjeev Kumar Jain
- Business: Fractional Car Ownership Platform
- Ask: ₹1 Crore for 2% Equity
- Valuation/ Networth: ₹50 Crores
- Funding: ₹50 Lakhs for 10% Equity + ₹50 Lakhs debt at 14% interest
- Sharks: Anupam Mittal & Peyush Bansal
- Episode: Season 3 Episode 45
Proratacar Shark Tank India Pitch:
Prorata is world’s first fractional car ownership platform where user can co-own their dream car by paying 8.33% of the total cost. The Prorata app algorithm connects you to people with similar interests from a co-owner community. The founder sought an investment of ₹1 Crore for 2% equity valuing the business at ₹50 Crores.
Prorata founder shared that they divide value of a car in 12 parts hence the 8.33% ownership. Every owner gets to use the car for 150 days over 5 year period and after 5 years, Car is sold and each co-owner gets the share of that resale amount. Each Co-Owner also pays 10% of the cost of the car as annual maintenance fee. This includes, Insurance premium, car pickup and drop off between co-owners, periodic service and maintenance and LLP management.
Proratacar’s Financials during Shark Tank India:
Prorata also charge users ₹99 for community access fee. They already have 10,000 paying users in last 7 months. community members are matched with each other using the data they fill in and their dream car. After that an LLP is created and an Escrow mechanism facilitates payment to the dealer. Co-owners can review 1 year calendar to book slots for usage. The founder added that reservation and cancellation has its limitations to stop misuse.
The company was at a pre-revenue stage at the time of their pitch. The company however have raised ₹1 Crore in Funding when they were at the Idea stage. Those funds were raised in June 2022 at a valuation of ₹10 Crore floor and ₹40 Crore Cap. They are currently raising another round worth ₹4 Crores at ₹50 Crore valuation for which the company already got some soft commitments.
Proratacar Shark Tank India Negotiations & Funding:
Namita was the first shark to go out citing its next to impossible for Indian consumers to plan 30 days ahead so this won’t work in this market. Aman goes out citing its too early to know what operational challenges would this system bring. Vineeta comments that there is no market for this business therefore she also goes out of the deal.
Anupam and Peyush come together to offer ₹50 Lakhs for 10% and the rest as debt at 14% interest valuing the business at ₹5 Crores. The founder accepted that offer and walked out of the tank with a deal.
Who is the founder of Prorata?
Sanjeev Kumar Jain founded Prorata. He is from Bangalore.
How is Prorata doing after Shark Tank India?
Our research in the Prorata revealed that while they did get a deal on Shark Tank India, whether that deal closed after the show is still unclear. As of May 2024, The company is still in business and thriving! They have over 1.8 Lakh Instagram followers. We will update this article once more information comes to light but in the meantime, you can check out other Shark Tank India Products by clicking the button below!
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Here are other companies from Season 3 Episode 45