Self-drive car rental start-up Zoomcar India Pvt. Ltd is in talks to raise $50 million from new and existing investors as it looks to expand to newer cities, two people close to the development said.
Zoomcar’s funding talks have progressed furthest with car and tractor manufacturer Mahindra and Mahindra Ltd (M&M), said one of the two people, both of whom spoke on condition of anonymity.
“They are in advanced talks with Mahindra and Mahindra, while there is interest from two other new investors, too,” the first person said. Mint couldn’t ascertain the identity of the other investors.
Zoomcar also has a partnership with Mahindra and is looking to launch electric cabs in Agra, Dehradun and Chandigarh. The company is currently running a pilot in Mysore, according to a third person familiar with the matter.
Zoomcar declined to comment. Mahindra didn’t respond to emails seeking comment.
Zoomcar already has a strategic investor in Ford Smart Mobility, a unit of Ford Motor Co., which had led an investment round of about $24 million in the company in August 2016.
The Bengaluru-based company was founded in 2012 by Greg Moran and David Back, who quit in May 2015 to return to the US, citing personal reasons. It has so far raised at least $45 million from Ford, Sequoia Capital, Empire Angels, Nokia Growth Partners and others.
Zoomcar India is a fully-owned subsidiary of US-based Zoomcar Inc. and is designed after US-based ZipCar, which allows its users to book a car, make the payment, locate the vehicle and even unlock it with the help of a single app without the help of any executive.
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