Thomas Bangalter in an interview for some Swedish Pop magazine:
It was at the same time as Warren G’s “Regulate” came out, says Thomas. We wanted to make some kind of gangsta rap too and made the sounds as dirty as possible. Strangely, no one ever compared it to hip hop. We have been told that the drums sound like Queen and The Clash, that the melody is reminiscent of Giorgio Moroder, that the synths sounds like electro and a thousand other things. No one agrees that it’s hip hop.
After reading this story and listening to Da Funk again I can totally hear their reference to the funk infused gangsta rap from that time. But I would have never made that connection myself.