DriveU doubles profit to Rs 3.6 crore, targets Rs 170 crore revenue

By Nathan Brooks

DriveU's audited financial statements show net profit more than doubling to Rs 3.6 crore in the fiscal year ended March 2026, up from Rs 1.73 crore in FY25. The Bengaluru-based company also lifted net revenue 14% to Rs 32.9 crore, extending its profitable run to a third consecutive financial year.

Net revenue rose from Rs 28.9 crore in FY25, the audited statements showed. Net transaction value, or NTV, climbed 17% to Rs 131 crore from Rs 112 crore, while gross revenue also reached Rs 131 crore. Total expenses rose 10% to Rs 30.5 crore, below the 14% pace of net revenue growth.

Founded in 2015 by father-son duo Ashok Shastry and Rahm Shastry, DriveU supplies trained, verified drivers to customers who hire them to drive their own cars. The company operates in 13 cities and has completed more than 10.5 million trips with over 100,000 registered driver-partners, according to the company.

The source report identifies Uber, Ola and Rapido as the dominant ride-hailing platforms, connecting riders with taxis and two-wheeler services. It also describes a parallel market for on-demand drivers among car owners, with road-safety and drunk-driving concerns adding to demand.

Audited statements show employee benefit expenses held at Rs 13.7 crore. Direct expenses, including partner incentives, technology costs and trip insurance, stood at Rs 8.35 crore.

The audited statements show driver payouts of around Rs 97.21 crore in FY26. That payout figure sits alongside total expenses of Rs 30.5 crore for the year. In practical terms, the platform passes a substantial portion of transaction value to driver-partners before accounting for its own costs.

Business promotion and marketing spending fell 5% year on year to Rs 4.84 crore, according to the audited statements. EBITDA grew 58% to Rs 2.74 crore, and its margin on net revenue improved to 8.3% from 6% in FY25. That mix of 14% revenue growth and 10% expense growth produced the higher margin.

DriveU launched DriveU Reserve, a chauffeur-driven premium cab service, and DriveU Coach, which provides driving lessons at customers' homes, in April 2026. Both sit beyond the core driver-on-demand business, which hires verified drivers to take customers' own cars on trips.

What does this change for DriveU and its customers?

DriveU plans to fund its expansion through operating cash, according to the company. At March 2026, it held Rs 12 crore in cash and bank balances and Rs 20 crore in total current assets, according to the audited statements.

The company has raised Rs 54 crore since its 2015 founding, with its last round in 2024, and has taken no fresh capital since. That leaves the new businesses reliant on cash generated by the existing operation.

For customers, the change is service choice: a hired driver for their own car, premium chauffeur rides and lessons at home. The company plans to expand Reserve and Coach into more cities. For driver-partners, FY26 payments of around Rs 97.21 crore indicate the scale of payouts, not average partner earnings.

DriveU expects gross revenue of Rs 170 crore in FY27, the company said, about 30% above FY26. The target uses gross revenue, while FY26 net revenue grew 14% and NTV grew 17%.

The next test is whether DriveU can reach Rs 170 crore gross revenue in FY27 while expanding Reserve and Coach and funding those investments from operating cash. Meeting that target would show that its profitable core can finance a broader service mix without fresh capital.