Juspay Creates Tech Entity for Namma Yatri and Other Mobility Apps

Last November, Juspay, the digital payments startup, took a significant step by separating its ride-hailing branch, Namma Yatri, along with its various mobility apps, into an independent company named Moving Tech Innovations. According to Magizhan Selvan of Moving Tech Innovations, not only Namma Yatri but also other mobility apps like Mana Yatri, Yatri, and Yatri Sathi have been incorporated under the wing of this fresh entity.

The new organization is being led by Shan MS, former chief growth officer of Juspay, and Selvan, former chief product officer. Both executives are now fully dedicated to the newly established entity. Selvan stated in a press release that this transition has allowed Namma Yatri to achieve greater agility and independence in the mobility industry.

He explained that the reason for the hive off was due to the unique characteristics of the businesses, which necessitated their separation. These differences included varying day-to-day operations, community engagement models, growth strategies, compliance requirements, and stages of evolution.

“With ongoing backing from Juspay, we’re set to speed up innovation and leave a positive mark on the industry. As part of Moving Tech Innovations Pvt Ltd, Namma Yatri is even more dedicated to supporting drivers through our zero-commission, direct-to-driver approach. Presently, Namma Yatri teams up with close to 300,000 drivers in various cities. Our array of apps has facilitated over 31 million trips, significantly boosting drivers’ earnings to almost INR 500 Crore,” he emphasized.

Related: Fintech Startup Juspay Revenue Exceeds INR 200 Cr

Juspay currently holds the lion’s share in the fresh venture for Namma Yatri. Meanwhile, the software powerhouse Beckn, which also fuels the backend of ONDC, and the Bengaluru Autorickshaw Drivers Union (ARDU) count among the other stakeholders.

Selvan mentioned that Namma Yatri and Juspay will keep working hand in hand where their strengths align, making the most of each other’s expertise to enrich their services.

It’s worth noting that Moving Tech Innovations has struck a deal with ARDU as well. This pact entails Namma Yatri collaborating with the autorickshaw community in Bengaluru, drawing from their invaluable insights to jointly develop their offerings.

In this setup, ARDU’s general secretary, D Rudramurthy, alongside key officials Pattabhiraman, Naveen Kumar, and Nagalakshmi, will assume pivotal roles during the initial phase of our partnership, serving as ‘Community Enablers’.

“Over the past three years, Namma Yatri has been fully invested in fostering inclusive development, partnering with a diverse array of drivers to enhance services and stimulate progress. Our commitment lies in working hand in hand with all driver unions and associations that share our goal of empowering drivers,” Selvan expressed wholeheartedly.

It’s important to highlight that ARDU made the decision to part ways with the platform back in December 2023, citing concerns about its neutrality towards unions. On December 12, Rudramurthy released a statement criticizing Namma Yatri as being too corporate-driven and expressing disagreement with how the company was being managed.

Following this split, the ride-hailing app swiftly expanded its operations, leveraging ONDC. It ventured into the markets of Chennai and Delhi in January. The app proudly claims to have already established a strong presence in seven cities, including Bengaluru, Mysuru, and Kolkata.

Just last month, a fresh ride-hailing app named Mana Yatri was introduced in Hyderabad, joining the array of services offered by ONDC. Much like its flagship counterpart, Mana Yatri enables users to conveniently book autos and cabs. What’s more, it extends a favorable deal to drivers with a zero-commission approach.

In contrast, there’s Juspay, nurtured by the support of SoftBank and founded back in 2012 by Vimal Kumar and Ramanathan RV. This vibrant venture presents itself as a comprehensive digital payments solution, providing a range of services under the software-as-a-service (SaaS) umbrella, particularly excelling in payment gateway services.

The operating revenue of the company surged by 89% to INR 213.3 Cr in FY23 from INR 112.7 Cr in the previous fiscal year. However, there was a 4% increase in net loss, reaching INR 105.7 Cr during the year under review from INR 101.5 Cr in FY22.

Amid Juspay’s restructuring, Moving Tech Innovations emerged as an independent entity housing Namma Yatri and other mobility apps. The move aimed to foster greater agility and independence and support drivers with a zero-commission approach. Stakeholders like Juspay, Beckn, and ARDU played pivotal roles, facilitating partnerships and expansions into new markets. Moving Tech Innovations’ leadership, community engagement, and collaborations underscore its commitment to inclusive development. Meanwhile, Juspay, backed by SoftBank, demonstrated robust growth in the digital payments sector. These developments reflect strategic maneuvers and partnerships in the mobility and digital payments landscape.