Car-sharing firm Zoomcar to go public via SPAC

Indian car-sharing platform Zoomcar is set to go public after reaching an agreement to merge with Innovative International Acquisition Corp., a US-based blank-check firm.

Photo credit: Zoomcar

The SPAC merger is slated to be completed in the first half of 2023, subject to approval by Zoomcar’s and Innovative’s shareholders, among other requirements.

The pro forma enterprise value of the combined entity, which will be known as Zoomcar Holdings, is estimated to be US$456 million.

The platform’s shareholders are expected to retain a majority of the outstanding shares of the combined entity. It will also designate a majority of proposed directors for Zoomcar Holdings’ board.

Founded in 2013, Zoomcar has over 3 million active users and operates in more than 50 cities in India, Indonesia, Vietnam, and Egypt.

Co-founder and CEO Greg Moran said Zoomcar is “positioned to cut across emerging markets” and aims to target “future expansion opportunities” in Southeast Asia and Latin America, among other regions.

He added that as the current average private-car ownership in Zoomcar’s core markets is only less than 10%, there is a vast addressable market totaling around US$90 billion annually by 2025.

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