India-based on-demand car rental service Zoomcar India has collected $30m from investors led by Sony Innovation Fund by IGV, a corporate venturing vehicle for consumer electronics producer Sony, the Economic Times reported yesterday.
The tranche also features undisclosed existing investors and reportedly forms part of an ongoing series D round for Zoomcar that is targeting a final close of $100m.
Earlier reports had indicated Zoomcar was seeking $500m in April 2019 from investors including automotive manufacturer Mahindra & Mahindra, but the deal was never officially confirmed.
Founded in 2012, Zoomcar runs an app-based service providing flexible car hire in 27 Indian cities serviced by a fleet of more than 3,000 vehicles.
The company also offers bike hire in certain markets and has recently introduced a subscription service where groups of customers can book out vehicles for up to 36 months.
The capital will aid Zoomcar’s geographical expansion and technological upgrades, centred on areas such as the internet of things and data science.
Zoomcar has now disclosed approximately $130m in equity and debt financing, having last secured $1.9m of equity in September 2019 from its US-based parent holding entity Zoomcar Inc, according to Inc42.
Zoomcar Inc, venture debt firm Trifecta Capital and unnamed investors reportedly supplied roughly $11.4m of equity and debt financing between mid-2018 and July 2019, following a $40m series C round in 2018.
Mahindra & Mahindra invested $27.3m to lead the latter round and was joined by NGP Capital, the venture capital firm spun off by communications technology provider Nokia, Sequoia Capital and Empire Angels.
Carmaker Ford had previously led Zoomcar’s $24m series B in 2016 through its Ford Smart Mobility subsidiary, investing alongside existing backers NGP (then known as Nokia Growth Partners), Sequoia and Empire Angels.