Bangalore-based self-driven car rental service ZoomCar has raised $8 million from Sequoia Capital, with participation from new investors former Infosys CFO Mohandas Pai, Manipal Group’s head of corporate affairs Abhay Jain, reports The Economic Times. Existing investors Empire Angels, Funders Club, Basset Investment Group and funds advised by Triangle Growth Partners also increased their stake in this round.
The company plans to use the funds to hire talent and invest in technology. Currently, the company rents out self-driven cars in Pune and Bangalore, but plants to expand to Mumbai, Delhi, Hyderabad, Chennai and Goa over the next one year. The company also plans to expand its existing fleet of 250 cars to over 1,500 cars.
Founded by Greg Morgan and David Back in 2013, Zoomcar was part of Microsoft Ventures Accelerators first Accelerator Plus batch that graduated in May this year. The report says the company has so far raised about $11 million. It had raised $1 million seed funding from Empire Angels, Funders Club, Basset Investment Group, Lady Barbara Judge and other angel investors in October 2013. Prior to that, the company had raised $650,000 across several angel rounds. This includes a $200,000 investment from angel investor Raj Kumar Elango in July 2013, a $30,000 funding from former US treasury secretary Larry Summers and a $215,000 funding round from Empire Angels, Lady Barbara Judge and other angel investors in May 2013.
Competition: Carzonrent, which offers self drive facility in Bangalore, Delhi, Goa, Hyderabad and Mumbai, is Zoomcar’s primary competitor. Last year, the company had partnered Mahindra Reva to offer Mahindra Reva e2o as a self drive car option in Delhi, Mumbai and Bangalore. Plus, there are a number of car rental services in the country, like Uber, Olacabs, Taxiforsure, Savaari, and Meru Cabs among others.