Juspay hives off mobility platform Namma Yatri as a new entity Moving Tech Innovations Ltd, a Juspay spin-off, is dedicated to finding affordable solutions for the ride-hailing sector.

Fintech major Juspay has hived off its ride-hailing subsidiary, Namma Yatri, into a separate entity.

Shan M. S., the chief growth officer of Juspay, and Magizhan Selvan, the chief product officer, are currently in charge of the new entity, which will be known as Moving Tech Innovations Ltd.

The new entity has been operational from March 1, 2024.

In the new company, Juspay holds a majority stake alongside its founders and senior personnel. "The entity does not have any external investors on its cap table currently, but is in talks with potential investors to raise its seed round of funding," Shan said.

"Though we are talking to investors, the idea is not to build yet another mobility business. We want to focus on a UPI-like model that will solve for cost and improve customer experience, while ensuring sustainability," he added.

According to Shan, the firm has turned "operationally profitable" in Bengaluru-- its biggest market with well over 30,000 drivers -- inclusive of costs like map services, cloud costs, and city-specific driver and customer services cost.

The firm is yet to break even at a company level, inclusive of costs like engineering and marketing. It is now looking to turn profitable in new cities it expands to in a 12- to 18-month period, while turning profitable at a company level in the next three to four years, he added.

In addition to its 100 full-time staff, Namma Yatri also employs a comparable number of contractors for tasks like customer service. Bengaluru, Delhi, Hyderabad, Chennai, and Kolkata are among the eight cities where it is accessible. Now, the company wants to go from auto to cab services in Bengaluru.

The company, which employs over 2.6 lakh drivers nationwide, competes in the ride-hailing market with companies like Uber, Ola, and Rapido. In January of this year, it expanded to Delhi.