Filipino Car-Sharing Startup Doon Raises P84.4 Million in Pre-Seed Funding Round
Filipino car-sharing startup Doon has raised a total of $1.5 million (about P84.4 million) in pre-seed funding, the company announced recently. The total investment is composed of both debt and equity instruments, including $500,000 in equity funding from a group of angel investors and a number of domestic and foreign Family Offices of former tech founders who have exited hailing from the Philippines, Singapore, and Taiwan, according to the news release.
Company officials said the equity portion of the raise will allow Doon to further develop its web marketplace and enhance its current mobile online car-sharing platform. It also aims to strengthen its team with key hires in finance, operations, and technology to prepare for and bolster the company’s rapid traction ramp-up.
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An additional debt facility of up to $1 million completed the round through Esquire Financing (not affiliated with Esquire Philippines magazine), which is a subsidiary of Fuel Dreams Holding which also took a stake in the equity portion of the raise.
Doon positions itself as the country’s first fully-insured peer-to-peer car-sharing platform. Like an AirBnb for cars, the platform allows car owners to rent them out to others who need them. The owners can earn money from their cars while renters can have the convenience of being able to use a car when they visit a new place. The platform also provides a range of insurance coverage options, emergency roadside assistance, as well as GPS tracking to ensure that both car owners and renters are protected from potential liabilities.
Doon has partnered with local insurance company Pioneer Insurance to provide comprehensive coverage for every car booking, protecting users who list their cards on the platform.
“We’re grateful for the strong signal of support and belief from our new investors in our business model and ability to execute,” said Doon CEO and co-founder Enrique Hormillo. “With the funding, we will be able to focus on creating the best user experience for our customers by deeply enhancing our digital platforms, strengthening our brand presence, doubling-down our operations in prominent city and tourist destinations, and expanding our product offering.”
According to COO and co-founder Miguel Locsin, Doon is trying to change car-owners’ attitudes towards their cars. “They can be assets that generate income,” he said. “And we are providing hosts a way to do this that manages their risk while giving the guests a convenient way of getting around, not just in major cities, but in the provinces, too.”
Rene Cuartero, CEO and co-founder of AHG Lab, voiced his support for Doon, which is a portfolio company of the venture studio. AHG Lab was one of the first to grant not just funding but ancillary support such as technology development, back-office admin and accounting, marketing, and long-term financial strategies to the startup.
“We’re quite excited for the team of Enrique, with his decade-long experience in the automotive industry, and Miguel Locsin with his seasoned tech platform operator experience, as they have now built up significant capital to execute DOON’s exciting growth plans,” shares AHG Lab CEO and Co-Founder Rene Cuartero. “Their background and experience as the right team to bring this solution forward truly shine through as they also receive government support through the Philippine government’s, DOST-TECHNiCOM grant.”
