RushOwl secures USD $10 million to expand ride-sharing in Asia
RushOwl has closed a USD $10 million Series A funding round to support the growth of its dynamic ride-sharing platform and expansion into new Asian markets.
The funding round was led by Gobi Partners, a pan-Asian venture capital firm, with the Hong Kong Investment Corporation Limited (HKIC) participating as an investment partner. HKIC is wholly owned by the Hong Kong Government and focuses on investments that drive innovation and sustainability for the region's future economic growth.
Expansion plans
Founded in 2018 by Chief Executive Officer Shin Ng, Chief Technology Officer Songyan Ho, and Chief Operating Officer Kris Lee, RushOwl currently operates in Singapore, India, and Hong Kong. The company intends to use the funds to broaden its market presence to the Philippines, South Korea, and Malaysia. An R&D centre will also be established in Malaysia as part of these expansion efforts.
RushOwl has provided over 1.5 million rides since its inception and manages more than 4,000 trips every day. Its key offering is RushOS, an AI-based dynamic routing algorithm that combines trip requests to facilitate shared journeys, aiming to improve fleet efficiency and reduce environmental impact. The technology is designed with readiness for integration with autonomous vehicles, with an emphasis on optimising asset utilisation and maintaining sustainable returns on investment.
"We saw in both developing and mature cities that when governments want to increase their land usage to include more companies and amenities to benefit people, accessibility continues to be a big problem because they cannot immediately create a public transport offering without spending billions of dollars," said Shin Ng, CEO of RushOwl. "The idea of creating a free-flowing public transportation system appealed to us."
Environmental and operational impact
RushOwl's RushTrail mobile app is currently used by 250,000 individuals, including staff and students, providing commutes that are on average 30% shorter than those offered by public transport. According to company data, the dynamic ride-sharing platform reduces carbon emissions by 50% through mileage savings, with shared journeys replacing more than three vehicles on average.
The firm's business model is primarily business-to-business, with key partners including Asia Pacific Breweries, CBRE, and Singapore's Ministry of Education. RushOwl reports that it has secured contracts with annual revenues in the eight-figure range, supported by agreements of no less than 24 months. Its approach aims to provide a cost-effective and more sustainable alternative to traditional fixed-fleet shuttles.
The three founders initially met as mobility researchers and have consistently focused on improving equitable access to transportation, a principle that continues to shape the company's operations and technology development.
Investment rationale
Gobi Partners participated in the funding through three of its managed funds with coverage in Hong Kong and Malaysia, highlighting what it describes as the cross-border potential of RushOwl's business strategy.
Clara Chan, CEO of the HKIC said, "The HKIC adopts an 'investment+' approach and invest in opportunities that not only generate financial return but also create or support long-term themes that could be Hong Kong's future economic growth drivers. Our investment in RushOwl embodies this approach - supporting a company whose smart mobility solutions address urban and sustainability challenges that are highly relevant to Hong Kong and other major cities. This is a very important trend to capture. We are pleased to partner with RushOwl and will support its continued expansion to Hong Kong and across Asia. This is a vivid case showcasing Hong Kong's role in contributing to regional economic and social developments by way of investing."
RushOwl plans to utilise the new capital to expand its business-to-business sales team, deepen its engagement with fleet partners, and initiate licensing of its RushOS algorithm to external operators.
Chibo Tang, Managing Partner of Gobi Partners said, "One of the most vital elements of smart cities is transportation that is not only affordable, but also sustainable. RushOwl addresses urban challenges such as congestion and excess emissions, while preparing for the future by developing technologies compatible with autonomous vehicles. We are excited to work with RushOwl as they make cities across Asia more accessible to everybody who lives in them."
