Gurugram-based startup Park+ is on a trajectory to achieve profitability, with its founder and CEO, Amit Lakhotia, stating that the company aims to turn profitable in the January-March 2024 quarter. Park+ has been operating at a loss since its inception in 2019. The startup has garnered significant attention, having secured approximately $50 million in funding from notable investors like Sequoia Capital, Matrix Partners, and Epic Capital.
One noteworthy aspect of Park+’s financial strategy is that almost 50% of the funds it has raised thus far remain untouched. Additionally, 80% of the ₹140 crore it raised in December 2022, at a valuation of $340 million, remains in its bank account. This financial prudence positions the company favorably for future growth, potentially reducing the need for additional funding in the near term.
Amit Lakhotia, former vice president of Paytm Payments and Park+’s CEO, emphasized the importance of building a business frugally. This approach allows Park+ to build multiple use cases, assemble a strong team, and expand in a category that is still evolving. The company’s revenue generation has contributed to its ability to limit the utilization of its financial reserves.
Park+ has set ambitious expansion plans, with the goal of establishing a presence in 100 cities in calendar year 2024. Presently, the startup operates in more than 50 cities, including Delhi NCR, Bangalore, and Mumbai. It boasts an extensive inventory comprising over 250,000 parking slots, partnerships with 2,500 residential societies, 250 offices, and 35 malls. Additionally, Park+ envisions expanding its services beyond India’s borders in FY25, although specific international locations have not been confirmed.
In contrast to some startups that have experienced significant workforce fluctuations due to economic challenges, Park+ has maintained a steadfast commitment to its employees. The company has not conducted large-scale layoffs, despite navigating the various waves of the Covid-19 pandemic. Lakhotia highlighted Park+’s gradual and sustainable growth in terms of workforce size, which reflects the frugal nature of its business model.
Park+ is working toward creating a super app tailored to car owners. The platform aims to offer a comprehensive range of services required by car owners, including finding parking spots, checking traffic challans, and recharging FASTag services, all accessible from a single app.