Parking Solutions: How ParkMate Addresses Urban Parking Challenges

In 2019, Dhananjaya Bharadwaj faced a frustrating incident when his newly acquired car was towed from a government-authorized parking lot, despite the parking attendant having parked it for him. The attendant's claim of non-responsibility was upheld by a parking ticket that boldly stated, 'Parking is at the owner's risk.' Bharadwaj, the Co-founder and CEO of ParkMate, not only had to deal with the inconvenience of his car being towed but also incurred substantial expenses exceeding Rs 1 lakh to repair the vehicle since insurance couldn't cover the damage.

Car parking woes have long plagued India, with surveys indicating that drivers in cities like Delhi waste up to 19 minutes searching for a parking spot. The problem is even more acute in cities like Mumbai and Bengaluru. To tackle these parking challenges, Bharadwaj joined forces with Abhimanyu Singh, whom he met during the Call of Duty World Tournament, to conceive ParkMate.

Founded in 2021 and headquartered in Moradabad, ParkMate is an app-based autotech company that offers intelligent, hyperlocal, and on-demand parking solutions. The startup commenced operations in May 2022 with a mission to revolutionize the parking experience for daily commuters, making it more convenient, efficient, and eco-friendly.

ParkMate's innovative approach provides users with real-time confirmed parking services wherever they go. The app continuously monitors parking availability at specific locations, offering live data on parking status. If a location reaches full capacity, ParkMate's algorithm automatically expands the search area, providing information on available parking spaces nearby. The platform includes features like the Trishool system, a hybrid FASTtag+ANPR+UniPay system that scans license plates and manages vehicle entry using HD cameras and proprietary software. For residential complexes and auto dealerships, ParkMate has developed the Kavach System.

Using the ParkMate app, users simply specify their destination, and upon arrival, they are met by a dedicated valet. There's no need for users to search for parking spaces themselves. The attendants are OTP-verified, and vehicles are GPS-tagged, allowing users to monitor their car's real-time location. When customers want their car back, they can request it through the app, and it will be returned to their preferred location. ParkMate also provides customers with 360-degree images of their vehicles before and after delivery. Every ParkMate attendant undergoes a rigorous 12-day training program, covering grooming, customer service, vehicle handling, application usage, crisis management, and legal fundamentals.

Presently, ParkMate has around 50 attendants and 18 employees on its team. Building trust among car owners regarding the safety of their vehicles posed an initial challenge for the startup. To address this concern, ParkMate integrated multiple layers of safety features and interlocks within its application, reinforcing user trust. Another challenge was integrating mapping technology into the valet application to guide attendants to the nearest available parking spaces. Additionally, the founders had to engage with parking contractors to explain the advantages of ParkMate's services and establish arrangements for efficient manpower and space utilization.

The ParkMate app is available for free on both Android and iOS platforms and has garnered over 75,000 downloads, with a retention rate of 55%. The service is priced at Rs 49 in Tier I cities and Rs 30 in Tier II cities, with various payment options, including cash. Initially, the founders invested Rs 9 lakh from their personal savings to bootstrap the startup. ParkMate has been experiencing quarterly growth of 1.5X and aims to achieve revenue of Rs 4 crore by the end of FY23, though current revenue figures remain undisclosed.

Currently, ParkMate operates in Lucknow and certain parts of Delhi, such as Karol Bagh, Sarojini Nagar, and Connaught Place, with plans to expand to Mumbai in the near future. ParkMate faces competition from players like Secure Parking, Park+, ParkSmart, and MyParkings.

The startup also provides parking software and hardware solutions to hotels and malls, including Gaursons, Phoenix Malls, DLF Malls, and Fun Republic group, available in 11 malls across Delhi-NCR and Lucknow. Additionally, ParkMate offers customized insurance solutions to cover car safety, damages, losses, and third-party liabilities, backed by commercial general liability insurance from SBI.

ParkMate recently collaborated with the Uttar Pradesh government to introduce the state's first FASTag-enabled smart parking solution in partnership with Lucknow Nagar Nigam and Hazratganj Trader Association in February 2023. The initiative aims to automate major parking facilities in Uttar Pradesh, alleviating haphazard and illegal parking, reducing traffic congestion, and improving access to major markets.

The smart parking market in India is poised for growth, with a valuation of $350.55 million in 2023 and an expected CAGR of 11.11%, reaching $593.63 million by 2028, according to Research and Markets. Rising urbanization and increased vehicle ownership are driving demand for parking solutions, especially in the context of smart cities and technology-enabled parking solutions.

Having secured undisclosed funding from We Founder Circle in September 2022, ParkMate has ambitious goals for the future. It aims to serve approximately one million customers by the end of FY 2023 and plans to introduce subscription plans offering unlimited parking access. ParkMate's vision includes expanding its reach across Tier I, II, and III cities, positioning itself as the go-to solution provider for the parking industry, and offering diverse solutions to meet evolving customer needs. The company is committed to leveraging innovative technology, exceptional customer service, and a deep understanding of the parking landscape to achieve these objectives.