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Prorata's Community-Driven Approach to Fractional Car Ownership

Prorata Car offers fractional ownership for cars in India. The platform aims to sell 100k cars to 1M users in four years

16 February 2023

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Kunal Tyagi

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  • Prorata Car offers fractional car ownership to up to 12 homeowners in a residential society.

  • The startup aims to sell around one lakh cars and onboard more than 10 lakh users in the next four years.

  • Prorata runs on an asset-light model and takes care of maintenance and insurance costs for users.

Prorata Car is a fractional car-ownership platform launched in December 2021 that approves up to 12 homeowners in a residential society to buy 8.33% or one ticket of total possession of a car. This ticket guarantees a person's usage of 30 days in a year. The maximum possession is capped at 25%, and a minimum of 4 customers is required to purchase one car. Users can reserve dates on the Prorata app for subsequent usage.


The startup objectives are to onboard greater than 10 lakh customers and sell around one lakh automobiles in the next four years. The founder's layout generates earnings from annual renovation costs, charging between INR 20,000 and INR 1 lakh per user, relying on the car's price. With this, Prorata will take care of the overheads associated with a vehicle, along with service, maintenance, and insurance plan costs.


Prorata runs on an asset-light model and no longer personalizes any asset. The car offered on the platform is registered under an LLP and does not entail any expenditure mandate for the startup. At the top of five years, the vehicle is sold to the highest bidder at a depreciated value.

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The startup initially ran an offline pilot to understand the on-ground response of its product. The CEO mentioned a need for more belief in the new area as a fundamental purpose at the back of the startup's preliminary setback. The startup then developed a marketing approach to build trust and educate customers before selling its product.


Prorata's advertising strategy revolves around constructing a community around fractional ownership. The startup has reached paid intent from over 350 cities across the country, with 1 lakh+ app downloads and over sixteen million impressions on various video-sharing structures considering the fact that December 2022.


Prorata anticipates unexpected challenges that the fractional vehicle co-ownership house might also pose, such as a stakeholder figuring out whether to surrender their ownership. The startup plans to appoint asset managers to address such situations and assist the exiting companion to locate a substitute from the neighborhood of vehicle lovers listed on the Prorata app. The startup additionally has a reservation mechanism on the app that operates on a first-come, first-served basis, permitting ticket proprietors to block an automobile for particular dates.

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