TaxiForSure, an India-based online taxi aggregator, has raised $10 million in Series B round led by Bessemer Venture Partners.
Existing investors - Accel Partners, Helion Venture Partners and Blume Ventures - also participated in the round.
The company will use the fund to expand to 20 Indian cities in the next 18 months, including Ahmedabad, Pune, Mumbai, Jaipur, Chandigarh, Kolkata, Indore, and Bhopal.
The total amount raised by TaxiForSure so far stands at $15 million, following its first round in June 2012 from Accel Partners, Helion Ventures and Blume Ventures.
Managing director of Bessemer Venture Partners India, Subramanya S.V, says:
"We are pleased to partner with TaxiForSure who show early signs of emerging as category leaders in the taxi-aggregation space in India.
"The company has proved their business model in a very short time and is ripe for scale. We see a huge opportunity in the space TFS (TaxiForSure) operates in and the leadership team at TaxiForSure has proved that they can capitalise on the opportunities with speed and accuracy."
Founded in 2011 by IIM-Ahmedabad graduates, Aprameya Radhakrishna and Raghunandan G, the company has turned profitable in Bangalore where it started its operation.
Currently, the company has partnered with about 240 operators who provide access to 4,000 taxis to operate in Bangalore, NCR, and Chennai. The company is launching its service in Hyderabad this month.
TaxiForSure has grown at a rate of 25-30% month-on-month and clocked a total of one million transactions by April 2014.
TaxiForSure's competitors include Uber, Ola Cabs, Savaari, and Meru Cabs.
Online taxi booking market is a hot trend in India. In a recent startup-focused report by PhoCusWright, it highlighted that ground transportation vertical attracted the most funding in Asia with an average of $18.3 million funding per company between 2005 and 2013.
In February 2014, a company in this space, TaxiPixi, raised seed fund from Hyderabad-based mobile phone maker Celkon Mobiles.
In November 2013, Ola Cabs, raised Series B round (rumored at $20 million) led by Matrix Partners. The company has over 6,500 taxis in its system, and gets 30% of its bookings via mobile channels.