M&M to invest up to Rs 176 crore in Zoomcar

NEW DELHI: Self-drive car rental company Zoomcar India has raised $40 million (Rs 255.4 crore) in its latest round of funding, which was led by automaker Mahindra & Mahindra, the Bengaluru-headquartered venture announced on Friday.
The latest round of equity financing comes about 18 months after the company, which competes with Myles and Revv as well as ride-hailing apps Ola and Uber, had last raised capital from institutional investors. In August 2016, it had mopped up Rs 160 crore ($24 million) in a deal led by Ford Smart Mobility, a subsidiary of US-based Ford Motor Company.

The company’s existing investors, a list that includes venture capital firms Sequoia Capital, Empire Angels and Nokia Growth Partners, also participated in the Series C funding round.

Mahindra & Mahindra, part of the $19 billion technology-totractors conglomerate, in a disclosure made to the Bombay Stock Exchange (BSE), said that the company had invested `176 crore for 16% stake in the US-based holding company.

“At Mahindra, we are playing a pioneering role in the shared mobility business and are looking forward to an impetus in it through this investment in Zoomcar.

We are confident that this partnership with Zoomcar will help further our vision to transform mobility in the country, thereby creating a more connected ecosystem,” Mahindra & Mahindra MD Pawan Goenka said.

Shares of Mahindra & Mahindra closed nearly 1% down from the previous close on the BSE at Rs 743.75.

J Sagar Associates acted as the advisers to Zoomcar on the transaction. The investment by Mahindra & Mahindra was made through its wholly-owned, Mauritius-based investment vehicle, Mahindra Overseas Investment Company.