The self-drive mobility platform startup Zoomcar has secured $40Mn through series C round led by the Indian auto giant Mahindra & Mahindra (M&M). Following the funding, M&M will pick up 16% stake in the Bengaluru headquartered startup. Zoomcar’s existing investors also participated in the round but the company has refused to disclose any details about them.
Zoomcar will use the latest capital infusion for speeding up its marketplace supply growth, enhancing the application of IOT technologies, and increasing product categories as well as its footprints across various Indian cities.
The company may also use funds to test water in the international markets as it seeks out growth opportunities beyond Indian shores. It is currently on a lookout for potential markets in Asia and African territories. Besides, it may also look to capitalize on latest funding by trying to expand its recently launched bicycle sharing service ‘PEDL’. This new service that is been currently run across 10 Indian cites claims to be country’s first dockless cycle sharing service.
Before the latest fundraising round, the startup managed to cough up $60.2 Mn through various rounds that saw participation of several high profile investors, including Ford Smart Mobility (startup arm of Ford Motors) Sequoia Capital, and Nokia Growth Partners.
Zoomcar was incorporated in 2012 with a small pilot project in the IT city of Bengaluru. However, over the last 5 years, the startup has steadily expanded its service across all the major Indian cities as well as many second-tier cities. With the virtue of this impressive growth, today the company boasts a pan Indian presence and has successfully emerged as the leading company in the self-drive mobility space.
Besides, the company has managed to steer away from direct competition from big boys like Uber and Ola. This is mostly thanks to its unique business model, which has greatly helped in differentiating it from these two major cab sharing firms.