Self-drive car rental service Zoomcar India Pvt Ltd is in talks to raise a funding of $50 million from new and existing investors, Mint reported.
Citing two people aware of the development, the financial daily reported that Zoomcar’s funding talks have progressed with M&M (Mahindra & Mahindra) the Indian multinational car manufacturing corporation headquartered in Mumbai.
“They are in advanced talks with Mahindra and Mahindra, while there is interest from two other new investors, too,” the first person told the source.
In its partnership with M&M, Zoomcar will be launching electric cars in Agra, Dehradun and Chandigarh.The company is currently running a pilot in Mysore, according to a third person familiar with the matter.
The information has not yet been verified, as the source didn’t receive reply to the query sent.
Zoomcar already has a strategic investor in Ford Smart Mobility, a unit of Ford Motor Co., which had led an investment round of about $24 million in the company in August 2016.
Zoomcar is a fully owned subsidiary of US based Zoomcar Inc and allows a user to book a self-drive car, make the payment, locate the vehicle and even unlock the car.
Zoomcar has been seeing some tough years, generating revenue, with the losses of Rs 100.4 crore in the previous year, according to data platform Tofler.
Zoomcar offers both inter-city and intra-city trips. The intra-city ride-hailing segment is largely dominated by Ola (ANI Technologies Pvt. Ltd) and Uber, both of which have launched services that compete with Zoomcar.