Self driving car rental company Zoomcar has raised funding worth $11 million from Sequoia Capital, Empire Angels and NGP. The company will use the funds to expand in terms of vehicles and cities, hiring, and product and technology development, and claims that it will add over 7,000 cars and launch in 15 cities across India.
Zoomcar claims to have over 1,500 cars across 250 pickup locations in Bangalore, Mumbai, Delhi, Pune, Chennai, and Hyderabad. It said that adding 1,000 cars to its fleet this year did not meet with the demand that it was facing and that its revenue and booking have grown thrice over since the start of this year.
Hyderabad launch: In May this year, Zoomcar’s cofounder David Back had quit the company. At the same point, Zoomcar launched operations in Hyderabad with ~30 cars at 6 different locations, mostly around Hitech city and Gachibowli. Zoomcar was to add over 1,000 cars in around 100 locations in the city.
Previous funding: In October last year, the company had raised funding worth $8 million from Sequoia Capital, with participation from new investors former Infosys CFO Mohandas Pai and Manipal Group’s head of corporate affairs Abhay Jain. Following this funding, existing investors Empire Angels, FundersClub, Basset Investment Group and funds advised by Triangle Growth Partners had also increased their stake in the company. The company had then planned to use the funds to hire talent and invest in technology and expand to Hyderabad, Mumbai, Delhi, Chennai and Goa over the next one year.
In 2013, Zoomcar had raised $200,000 from angel investor Raj Kumar Elango, $30,000 angel funding from former US treasury secretary Larry Summers and $215,000 from Empire Angels New York, Lady Barbara Judge among other angel investors.
Nano launch: In February this year, Zoomcar partnered with Tata Motors to add 50 Nano cars to its then fleet of 700. The company had said at the time that the Nano cars would be split between Pune and Bangalore.
David Back had cofounded Zoomcar with Greg Moran in 2012. The company was part of Microsoft Ventures Accelerators first Accelerator Plus batch that graduated in May last year. The company basically allows users to rent cars on an hourly, daily, weekly or monthly basis and currently has vehicles which include the Ford Figo and Ecosport, Honda City and Amaze, Mahindra Reva, Scorpio and XUV, Tata Nano and Safari, Maruti Ciaz, BMW 3 Series, and the Mercedes A class, GLA, and CLA.
Image Credit: Zoomcar