Peak XV-backed car services platform Park+ has ventured into the motor vehicles insurance space through a strategic partnership with ICICI Lombard, aiming to transform how car owners buy and claim insurance, founder and CEO Amit Lakhotia told FE.
The company, which doubled its user base to 40 million in the past two years, is focusing on deepening engagement rather than merely expanding its customer base. The insurance venture is part of its broader diversification strategy, which will also see it venturing into the used car marketplace through partnership with Cars24, and car servicing through local partnerships. For the used car business, which is in the beta phase, Park+ will earn commissions by connecting its consumer base with Cars24.
For the insurance venture, the company has obtained a corporate agency licence and will earn commissions — typically ranging from 15% to 25% as per regulations of the Insurance Regulatory and Development Authority of India (Irdai). While starting with ICICI Lombard, the company plans to onboard more insurance partners within the permissible limit of nine partners under the licensing norms. Beyond the commission earned from insurance providers, Park+ sees additional revenue streams in the claim ecosystem. “If we send users to the right service centres, we earn a margin there. If customers use our drivers, we make money on that,” Lakhotia said, describing it as an “ecosystem play”.
This expansion comes after Park+ significantly strengthened its FASTag business last year, distributing 350,000 FASTags monthly by March 2024, following Paytm’s exit from the space. Park+ has gradually reduced its revenue dependence on its original access control business (parking systems), which previously accounted for 80% of its revenue. The company’s current revenue mix sees about 40% generated from access control, 30% from FASTag, and 30% from other services. In FY24, the company generated revenue of approximately Rs 140 crore, while incurring a loss of over Rs 130 crore.
Lakhotia said that Park+’s existing businesses like access control, challan, parking, and valet services are already profitable, while newer ventures like insurance and car dealerships are currently loss-making. However, he expects these verticals also to turn profitable within 12-18 months.
The company, which last raised $17 million in 2023 at a valuation of $340 million, plans another fundraising round in the second half of this year, following the full-launch of its servicing and used cars verticals. Lakhotia also mentioned a possible IPO in “a couple of years” after the company reaches a revenue milestone of Rs 500-700 crore displaying consistent profitability.