Biz Kundu Roy, founder of car rental management software Coaster, breaks down the typical asset turnover cycle for car rental operators.
0:00 / 0:14exact quote · 14.3s
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“Some of them do it within six months. I think enterprise and some of the larger operators the smaller operators sometimes take it up to 18 months. But most of them, you will always see them selling between six to 18 months effectively.”
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More from Biz Kundu Roy
PredictionNot checkable as stated
Roy: Coastr targets $100K MRR and breakeven by end of 2022
“So by end of this year, we hope to utilize this fund to get to our hundred KMRR, which sort of gets us to break even revenue.”
Biz Kundu RoyMar 4, 2022▶ 19:15He Just Sold 25% For $2m, Can he Hit $1.2m ARR Next?
Disclosure
Roy: Coastr charges basic operators £3-£4 per vehicle monthly
“Very, very basic users would pay anything between kind of, you know, three to four pounds per vehicle per month. And that could as the three to four pounds per what? Per vehicle per month. What if a vehicle doesn't go rented? It's just sitting on the lot. I kn…”
Biz Kundu RoyMar 4, 2022▶ 3:24He Just Sold 25% For $2m, Can he Hit $1.2m ARR Next?
AssertionNot checkable as stated
Roy: Coastr generates roughly $20,000 in monthly recurring revenue
“Roughly about 20.”
Biz Kundu RoyMar 4, 2022▶ 8:17He Just Sold 25% For $2m, Can he Hit $1.2m ARR Next?
Insight
Roy: Car rental profits rely on defleeting timing and rental yield
“Rental companies earn income from two ways. One is buying and selling of the vehicle at the right time. So they buy in bulk at a reduced cost and then sell their assets at the right time. To optimize the value of that asset. So defleeting is essential. And in …”
Biz Kundu RoyMar 4, 2022▶ 10:29He Just Sold 25% For $2m, Can he Hit $1.2m ARR Next?
Disclosure
Roy: Coastr raised £1.4M for 25% equity in June 2021
“One was a 1.4 million pounds, which is roughly about two, two million dollars, I think, or just a little bit shorter. So this was completed in June, 20, 21 which is again, mostly private individuals. And we gave up another 25% as part of that.”
Biz Kundu RoyMar 4, 2022▶ 16:28He Just Sold 25% For $2m, Can he Hit $1.2m ARR Next?
AssertionNot checkable as stated
Roy: Coastr reached 40 to 50 tier-three customers by late 2021
“So that's where we kind of jumped to about 40 50 customers and the tier three space by end of 20, 21.”
Biz Kundu RoyMar 4, 2022▶ 12:49He Just Sold 25% For $2m, Can he Hit $1.2m ARR Next?
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