Zoomcar raised $40 million led by Mahindra and Mahindra

Zoomcar raised a Series C funding of US$ 40 million led by Mahindra & Mahindra. On-demand car rental service headquartered in Bengaluru, Zoomcar Inc, confirmed to have raised new funding including the sale of shares to Mumbai's auto giant Mahindra & Mahindra, where Ford and other investors also took part in the round,

Zoomcar CEO and co-founder, Greg Moran, said the Series C round is still open and can be extended to other investors who will participate in a US$170 million valuation. Mahindra & Mahindra confirmed it has invested Rs176 crore (US$27.5 million) in this latest round which gets 16 percent stake in share.

Tinuku Zoomcar raised $40 million led by Mahindra and Mahindra

The latest C Series funding is US$24 million led by Ford in 2016 and an undisclosed investment from China's Cyber Carrier added at the end of the year. Other supporters include Sequoia Capital, Nokia Growth Partners, FundersClub and a number of angels including former U.S. financial secretary Larry Summers and former CFO Infosys T.V. Mohandas Pai.

Zoomcar was established in 2013 and currently comes in 29 cities, 2.7 million registered users, 3,500 cars, and 1.1 million trips. Core business is rental that allows registered users to find and use cars, but the company shifts its focus with ZAP (Zoomcar Associate Program) which allows new car buyers to rent their vehicles.

"At Mahindra, we play a pioneering role in the mobility business and hope to drive it through this investment in Zoomcar. We are confident this partnership with Zoomcar will further help our vision of changing mobility in India, thereby creating a more connected ecosystem," Pawan Goenka, Managing Director of Mahindra & Mahindra.

In early 2017 Mahindra and Zoomcar announced a partnership to use electric cars into a shared mobility space. Mahindra's e20Plus has entered the fleet and is available in Mysore, Bangalore, and Hyderabad. Zoomcar also intends to add 500 fleets in more than 20 cities in India by 2018

"We are excited to welcome Mahindra's team to the next growth stage within India's self-drive car space. Mahindra shares Zoomcar's vision for multi-modal urban mobility and we look forward to exploiting the diverse platforms to accelerate the transformation into the future of electric mobility for India," said Moran.