Zoomcar, a leading self-drive mobility platform offering car and cycle sharing services, has announced that it has closed $40 million in a Series-C investment round. Mahindra & Mahindra led the new round. Zoomcar also saw participation from a variety of existing investors.
Zoomcar said the capital raised would be used to accelerate its marketplace supply growth, improving its lead within applied IoT (internet of things) technologies, and expanding into additional mobility categories across India.
The company has witnessed robust growth with its ZAP marketplace in 2017 as these vehicles now account for over 25% of its more than 3,000 strong total fleet. Most recently, Zoomcar introduced ‘ZAP Subscribe’, a first monthly subscription based program for cars.
The subscription offering endeavours to reduce all friction related to obtaining a personal vehicle by reducing the upfront payment, eliminating documentation and ensuring instantaneous delivery of the vehicle.
“Through the ZAP platform, subscribers can reduce their monthly subscription charges by 70% on an average, thereby creating a highly efficient option for accessing a personal vehicle,” Zoomcar said.
In October 2017, Zoomcar launched PEDL, a dockless cycle sharing service. The service currently operates across 10 cities with a fleet of more than 3,000 cycles. The service currently completes nearly 15,000 rides per day and partners with leading universities, IT parks, residential societies, municipal corporations and smart city groups.
Zoomcar expects this fresh funding to help the company hit over 15,000 subscriber vehicles on the platform before the end of 2018. The company also expects to increase its cycle count to meet the robust customer demand. Zoomcar is aiming at offering its PEDL service across more than 75 cities by year end.
“Mahindra shares Zoomcar’s vision for multi-modal urban mobility and we look forward to leveraging their diverse platform to help accelerate the transformation to a shared, electric mobility future for India,” said Greg Moran, co-founder and CEO, Zoomcar.
Mahindra SUVs already form a majority of Zoomcar’s fleet within that segment. Zoomcar was advised on this transaction by J Sagar Associates, Advocates, and Solicitors out of Bangalore.
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