Zoomcar, self drive car rental company raised Rs 168 cr ($25 million) Series C funding from Ford Motor on Monday. The total equity funding for the car rental company with the support of two other investors becomes around two-fold, that is Rs 312 crore ($46.5 million).
From the collective fund of Rs 312 crore ($46.5 million), the Ford Smart Mobility (automobile investment arm) invested the lead of $ 15million from the trio investors. while the collective sum of $10 million has been gathered by the other two-Sequoia Capital and Reliance Ventures.
Comparing to previous rounds of the collection, the Zoomcar managed to collect funds a little over $21million in the latest funds figures. The company has raised total two-fold equity by the contribution of 16 investors in five rounds since 2013.
This is the maiden investment from the Ford Motor Company into India’s start-up landscape. Business Standard reports suggests, “Zoomcar is EBIDTA-level profitable in several cities. It is close to being country-wide profitable in the next three months,” sources were quoted as saying by Business Standard, that also added that the car-rental company’s revenue is set to reach $25 million.
Last month, the car rental firm with the aim to expand itself to the new markets and fresh investments, switched to market place model. The marketplace model enhances the profitability with the addition of more cars leased by users on revenue sharing basis.
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With more than 1600 cars, Zoomcar serves in metro cities in Mumbai and Delhi. Apart from beginning its services in Kolkata, as per the Zoomcar CEO Greg Moran statement to Economics Times, the firm wants to expand its services availability in tier-2 and tier-3 cities.
“We found that it works well to have a lot of smaller cities that feed into larger cities — and that is something that has performed nicely for us,” Moran told Economic Times while sharing its strategies for their taxi services.
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