Bengaluru based Zoomcar has started 2020 with a bang after it announced a massive funding round of $30 Mn. The latest fund infusion in one of India’s popular self-driving car rental startup was spearheaded by Sony Innovation Fund, an venture capital arm of electronic giant Sony.
Some existing investors also reportedly took part in the funding round though their names have not been disclosed to the media. Zoomcar’s latest funding round is been widely touted as part of the $100 Mn series D round that began last year. As part of this round itself, the Bengaluru based startup had last raised $4.8 Mn from investors.
Following the latest infusion of $30 Mn, Zoomcar is now eyeing an extensive expansion program as it looks to ramp up its market share. The company will utilize the funds for expanding footprints across domestic market and for ramping up its technology including data science and IOT. The company also plans to substantially increase its fleet size in the next two years, along with adding new growth avenues like shared subscription model.
One of the unique propositions is that its both co-founders – David Back and Greg Moran – are both foreign based entrepreneurs. Apart from Zoomcar, both co-founders don’t nurture any strong Indian connection. Above all, the Bengaluru based company has emerged as a poster boy of the self-driving industry. Although it does face competition from many well-funded startups like Drivezy and Revv, none have managed to carve a niche like Zoomcar.
However, entry of SoftBank backed Ola in self-driving space in October last year should cause some worry for Zoomcar. But as of today, the latter certainly enjoys the envious status of being an incumbent leader in the self-driving industry.
Zoomcar’s success can also be gauged from its several high profile investors including auto giants Mahindra & Mahindra and Ford.