Artha Venture Fund and Everest Fleet

In 2019, Everest Fleet faced significant challenges in a market that largely overlooked operationally heavy and capital-intensive models. With a vision to transform the car rental industry, they aimed to increase car utilization from the conventional 35-40% to an impressive 75-80% through a 24-hour operational model and real-time tracking technology. Recognizing this opportunity, Artha Venture Fund (AVF) made a bold decision to invest ₹3 crore, which, with LP support, grew to approximately ₹7.5-8 crore.

However, the partnership faced severe tests during the COVID-19 pandemic, halting operations and leaving 600 cars parked with zero revenue. During this critical time, AVF provided essential financial support and strategic guidance, collaborating closely with the founders to navigate the crisis.

As Everest began to recover, accessing debt financing proved challenging. AVF leveraged its network to devise an innovative solution where car ownership was transferred to an LP’s balance sheet, allowing Everest to operate in an asset-light manner while expanding its fleet without burdening its balance sheet.

This strategic partnership was instrumental in Everest Fleet’s growth, expanding from a small fleet to over 10,000 vehicles, most of which remained off-balance sheet. AVF continued to support subsequent funding rounds, ultimately investing a total of $2 million while connecting Everest with potential lenders, including a global financial institution.

The collaboration extended beyond funding, with Everest providing services to other companies in AVF’s portfolio, such as LeverageEdu and Daalchini, creating a cohesive ecosystem. The partnership culminated in AVF’s first partial exit, achieving over 100% IRR. Today, AVF’s holding in Everest Fleet is nearly half the size of its total investment corpus, exemplifying resilience and strategic collaboration.